SpiceJet Agrees To ₹60 Cr Settlement With Aviator ML; NCLT Defers Other Cases

SpiceJet has reached a settlement with aircraft lessor Aviator ML over a payment dispute involving around ₹60 crore, but the airline’s wider insolvency battle remains unresolved after the National Company Law Tribunal (NCLT) deferred its order in a batch of eight petitions.

SpiceJet informed the NCLT that it had reached an agreement with Aviator ML overnight and had already made the first tranche of the settlement payment, according to a CNBC-TV18 report. The tribunal was scheduled to pronounce its order in the Aviator ML case on Monday.

However, other aircraft lessors opposed the settlement, arguing that SpiceJet was attempting to prevent the insolvency petitions from moving ahead by settling with only one creditor. They described the move as a “buy one and get eight free” plan.

NCLT Defers Order After Lessor Objections

The NCLT deferred its order in the Aviator ML case to August 19. Since the matter is linked to claims raised by other lessors, the tribunal also deferred its decision on the remaining cases.

The tribunal also reprimanded SpiceJet for informing it about the settlement when the court was scheduled to pronounce its final orders. It noted that the airline had already been given several opportunities to resolve the disputes and that the case had been pending for around two years.

The eight insolvency petitions have been filed by six aircraft lessors, including Sabarmati Aviation, JetAir 17, Falgu Aviation, Alterna Aircraft, Aviator ML and AWAS Ireland. The combined dues claimed across these cases exceed ₹500 crore, according to submissions before the tribunal.

SpiceJet Still Faces Financial Pressure

Aviator ML’s petition relates to an alleged default of around ₹60 crore involving a Boeing 737 leased to SpiceJet. The airline has previously settled disputes with several lessors, including Aircastle, Celestial Aviation and Wilmington.

However, it continues to face legal action from other lessors, including Sunbird France 02 SAS and CIT Group Finance. Fresh insolvency petitions have also been filed by NGF Alpha, NGF Genesis, NGF Charlie and NVS Brokerage.

If the NCLT admits the insolvency petitions, SpiceJet could face the corporate insolvency resolution process (CIRP) under the Insolvency and Bankruptcy Code.

The legal challenges come as the airline continues to deal with liquidity pressures. SpiceJet has been working to raise funds, induct leased aircraft and clear pending financial obligations. The airline was operating around 85 daily flights, compared with about 140 proposed under its summer schedule, while its domestic market share fell to 1.9% in June from 3.9% in January, according to the report.