Engine Lease Finance BV, an aircraft engine lessor of SpiceJet, has filed for insolvency against the struggling airline due to non-payment of over USD 12 million (around Rs 100 crore). Engine Lease Finance (ELF) has leased eight engines to SpiceJet and is claiming around USD 16 million, including interest and rental fees.
The case was brought before a bench of the National Company Law Tribunal (NCLT) in Delhi, where SpiceJet requested time to respond to the petition. The NCLT directed SpiceJet to file its response to the petition.
ELF, headquartered in Shannon, Ireland, is a leading independent engine financing and leasing company. It entered into an agreement with SpiceJet in 2017 to lease engines, but claims that the airline has not made payments since April 2021.
SpiceJet’s counsel argued that there is a pre-existing dispute between the two parties. Previously, ELF had taken SpiceJet to the Delhi High Court in 2023 after terminating the lease for two engines and seeking possession. Despite reaching a settlement, ELF returned to the high court, alleging that SpiceJet had failed to pay according to the terms. This matter is still pending before the Delhi High Court.
SpiceJet has faced insolvency petitions from several creditors, including Willis Lease, Aircastle Ireland Ltd, Wilmington, and Celestial Aviation. The NCLT rejected the pleas of Willis Lease Finance and Wilmington Trust, while SpiceJet settled the case with Celestial Aviation. The petitions filed by Aircastle and Alterna Aircraft are pending before the insolvency tribunal.
Both Wilmington Trust and Willis Lease Finance have appealed to the National Company Law Appellate Tribunal (NCLAT) challenging the dismissal of their insolvency plea by NCLT.
