Wednesday, June 14, 2023

Lithuania nails SpiceJet after inspection, fresh insolvency cases in English courts

Two aircraft-leasing companies have obtained summary judgment totalling over $15 million against SpiceJet in the high court in London in May 2023. Moneycontrol can also confirm that there are, at least, three more cases lodged in the commercial courts of London against SpiceJet which are currently in different stages. This also includes a claim filed by a Turkish company.

The development comes in the wake of Wilmington Trust SP Services (Dublin) filing insolvency plea in the National Company Law Tribunal (NCLT) against SpiceJet. Wilmington Trust, just like the two companies, GASL Ireland Leasing A-1 Limited and VS MSN 36118 CAV Designated Company, had also got a summary judgment in the high court in London in July 2021.

It is likely that these two companies — who had filed separate cases — could also approach NCLT seeking SpiceJet’s insolvency. In fact, the proceedings in the commercial court in London reveal that VS MSN could have got default judgment but instead sought a summary judgment to facilitate taking legal steps in India against the airline. A default judgment is given when a defendant fails to perform certain required tasks or fulfil mandatory conditions, whereas, a summary judgment can be obtained on the merit of the case, but without a full trial. The former is comparatively easier to obtain and set aside, but the latter can only be set aside on appeal.

MoneyControl has exclusive details of how SpiceJet initially refused to acknowledge service, had to face the ignominy of its legal team coming off record due to non-payment of fees, sought adjournments on the basis of having no legal representation, and made deliberate attempts to delay court’s timetable. All this and much more could not grant them any reprieve from the high court in London.

14/06/2023 Danish Khan/Moneycontrol

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