Budget airline SpiceJet is once again facing insolvency proceedings, this time initiated by Indonesia’s PT BBN Airlines, which claims the Indian carrier owes $5.94 million in unpaid lease rentals.

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The matter was brought before the Delhi bench of the National Company Law Tribunal (NCLT) on Friday. Although the tribunal has not yet issued a formal notice, it has set the next hearing for 21 April, after SpiceJet requested more time to respond.

According to PT BBN Airlines, SpiceJet had leased three Boeing aircraft under specific agreements and took delivery of them on 9 June 2024. The planes were then put into service by the airline. However, the lessor alleges that lease payments between May and September 2024 were not paid.

Also read: SpiceJet’s Statement – Addressing Financial, Operational & Regulatory Concerns and WION's rebuttal

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The Indonesian company claims that SpiceJet repeatedly acknowledged the dues through emails and WhatsApp messages and did not raise any objections until after the formal demand notice was sent. Partial payments made by the airline, it argued, further confirmed the outstanding liabilities.

“In light of the various acknowledgements, your lordships, I would say that this is a fit case for insolvency to be initiated for SpiceJet,” the counsel for PT BBN Airlines told the tribunal.

Also read: Is there more to SpiceJet's profits than what meets the eye? | WION Investigation

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SpiceJet’s senior counsel, Krishnendu Datta said that the aircraft were delivered late, resulting in significant financial and operational setbacks for the airline. Datta added that these delays were acknowledged by the lessor in previous communications, though not reflected in the current petition.

He also pointed out that an early termination agreement had been signed between the two parties but was later cancelled unilaterally by the lessor. Datta told the tribunal that SpiceJet had already filed claims for damages before receiving the demand notice and urged the court to examine the airline’s full defence before proceeding with a notice.

This latest dispute adds to the growing list of legal troubles for SpiceJet.

Also read: SpiceJet Fallout: Should the government have helped? | WION Investigation

By March 2025, over 20 insolvency petitions had been filed against the airline at the NCLT’s Delhi bench. Most have been submitted by aircraft lessors, vendors, and former employees, although none have yet advanced to full insolvency proceedings.

On 6 March, the tribunal issued a notice to SpiceJet over insolvency claims made by three Ireland-based lessors, NGF Genesis Ltd, NGF Charlie Ltd, and NGF Alpha Ltd, who accused the airline of defaulting on $12.4 million in lease payments.

In a separate matter, former pilot Devesh Bbyan also filed a ₹1.70 crore claim, alleging unpaid dues for the period from March 2020 to August 2022.

(With inputs from agencies)