Indian court chides SpiceJet as last-minute lessor settlement forces judgement delay

A bankruptcy bench in India reprimanded SpiceJet on Monday, after the carrier reached a late settlement with one of eight lessors whose petitions were set for decision, Business Recorder reported. Judges of the National Company Law Tribunal said the timing of the disclosure undermined the process and wasted valuable court hours. The bench also deferred its judgement until Wednesday so the parties could place the agreement before it.

The court also weighed whether the settlement affected seven other insolvency cases, where lessors urged it to issue rulings without delay. Kevic Setalvad, representing lessor Alterna Aircraft, accused the parties of taking chances and acting carelessly. SpiceJet had yet to comment when the report was published.

The airline, once India's second-largest domestic carrier, has cut flights, grounded aircraft and delayed pilot salaries as it faces a funding shortage. Its domestic market share stood at 1.9% in June, compared with about 15% in 2019, and it has received Rs1.5 billion ($15.69 million) under a government-backed credit programme. Citing Reuters, Business Recorder added that two ICBC leasing-unit entities moved in July to deregister four Boeing 737 MAX planes.