SpiceJet Resolves ₹60 Cr Dispute With Aviator ML, NCLT Puts Off Verdict On 7 Other Pleas

Aircraft lessor Aviator ML has pulled back its insolvency case against SpiceJet at the National Company Law Tribunal (NCLT), after the two parties settled a dispute worth close to ₹60 crore.

The settlement surfaced on Wednesday, August 19, just as the NCLT was scheduled to rule on eight insolvency petitions filed against the airline by various lessors, together amounting to claims above ₹500 crore. With the sudden truce between SpiceJet and Aviator ML, the tribunal said it was not in a position to deliver verdicts on the remaining seven cases that day.

NCLT Questions Eleventh Hour Move

Judges did not hold back in criticising the airline, describing the timing of the settlement as an attempt to deceive the tribunal. They pressed SpiceJet on why it chose to strike a deal with just one lessor right before judgment, despite the case dragging on for close to two years. The bench also wanted to know why the airline had not pursued similar resolutions with the other lessors whose claims were still pending a decision. As a consequence, the tribunal directed both SpiceJet and Aviator ML to pay ₹15 lakh in costs.

SpiceJet, for its part, called the ruling a favourable outcome, since it formally closed out Aviator ML's petition as withdrawn. The carrier confirmed that the seven remaining disputes would go through a fresh round of hearings under standard procedure.

The airline said it saw the tribunal's decision as movement in the right direction and reiterated its intent to engage constructively with partners to reach solutions acceptable to both sides.

A company spokesperson reportedly noted that SpiceJet had weathered a difficult stretch and was now concentrating on reviving operations, rebuilding its fleet and maintaining a cooperative approach with everyone it works with.

How The Dispute Began

The case stemmed from Aviator ML's claim of roughly ₹60 crore linked to an aircraft it had leased to SpiceJet. The tribunal had kept its order reserved since July 29. In total, six lessors, Sabarmati Aviation, JetAir 17, Falgu Aviation, Alterna Aircraft, Aviator ML and AWAS Ireland, had jointly filed the eight petitions under the Insolvency and Bankruptcy Code.

This is not the first time SpiceJet has resolved such matters outside court battles; it has previously reached agreements with Aircastle, Celestial Aviation and Wilmington. Even so, several other lessors continue to pursue the airline over unpaid rentals and other dues.

Representing Aviator ML in the case were senior advocates Ramji Srinivasan and Anandh Venkataramani, alongside Saket Satapathy, partner at Tuli & Co. SpiceJet's defence was led by senior advocate Krishnendu Datta.