SpiceJet questions the maintainability of insolvency petitions by aircraft lessors Wilmington and Celestial
Spicejet, on Thursday, argued that the insolvency petition filed by aircraft lessor Wilmington Trust SP Services (Dublin) Limited was not maintainable, questioning the company’s locus standi to file an insolvency petition.
In another case listed before the National Company Law Tribunal, Spicejet argued that the insolvency petition filed under Section 10 of the Insolvency and Bankruptcy Code, 2016, by Celestial Aviation Services Ltd, wasn’t maintainable either.
The low-cost airline informed the National Company Law Tribunal that the owner in Wilmington’s case was not the company that had filed the petition but BOC Aviation Ltd, which had transferred it to Aircaste (Ireland) Ltd and, thus, the petitioner could not be the operational creditor.
“He’s not the owner of the aircraft, so in what capacity does he become the operational creditor,” senior counsel representing Spicejet stated.
“Trustee is only entrusted with the property and cannot become the owner of the property,” he further said, referring to the invoices, where the account was also in Aircastle (Ireland) Ltd’s, earlier referred to as Klaatu Aircraft Leasing (Ireland) Limited, name.
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The senior counsel further maintained that an amendment to the lease agreement made on February 5, 2021, had no mention of Wilmington.
Aircastle (Ireland) Ltd has filed two insolvency petitions against Spicejet before the NCLT. ET had earlier this month reported that Aircastle (Ireland) Ltd had rejected the airline’s offer to allocate shares in lieu of dues owed by the airline.
The counsel representing Wilmington, on the other hand, argued that the lease agreement was in
