Engine Lease Finance moves insolvency plea against SpiceJet
Engine Lease Finance BV, an aircraft engine lessor of SpiceJet, has moved an insolvency plea before the NCLT against the debt-ridden air carrier over non-payment of over USD 12 million (around Rs 100 crore). Engine Lease Finance (ELF) has leased eight engines to SpiceJet. Along with interest and rental, ELF has claimed an amount of around USD 16 million.
The matter was listed before a Delhi-based bench of the National Company Law Tribunal (NCLT) on Wednesday, which heard it briefly. Counsel appearing for SpiceJet sought time to respond to the petition filed by Engine Lease Finance.
On this, the NCLT bench comprising members Mahendra Khandelwal and Sanjeev Ranjan directed SpiceJet to file its response to the petition.
Also Read: Delhi HC asks SpiceJet to pay $4.8 mn to engine lessors in four instalments
Headquartered in Shannon, Ireland, ELF is the world's leading independent engine financing and leasing company.
It entered into an agreement in 2017 with SpiceJet to lease engines. According to the petitioner, the low-budget carrier has defaulted on payments since April 2021.
During the hearing counsel appearing for SpiceJet contended that there is a pre-existing dispute between them.
Earlier, ELF had approached the Delhi High Court against SpiceJet in 2023 after terminating the lease for two engines and sought possession.
Later both the parties arrived at a settlement and ELF decided not to pursue the matter.
However, it again approached the high court after alleging SpiceJet had failed to pay in accordance
