Legal Battle Escalates as Cross Ocean Partners Targets SpiceJet in Delhi High Court

In a new twist to SpiceJet’s legal woes, aircraft lessor Cross Ocean Partners is taking the battle to Delhi High Court to enforce a UK High Court judgment against the Indian low-cost carrier. The lessor, operating through the special purpose vehicle (SPV) known as VS MSN 36118 CAY Designated Activity Company, is seeking around INR 900 million rupees (USD 10.8 million) in unpaid leases from SpiceJet.

MoneyControl, a leading Indian financial news site, first reported the development on November 21. The SPV’s legal move follows a favorable judgment obtained in the UK in June, in the case VS MSN 36118 CAV Designated Activity Company vs. Spicejet Limited (case no: CL-2022-000479). According to counsel for VS MSN 36118 CAV, SpiceJet has been periodically defaulting on monthly lease payments for a B737-700 since late 2020. The aircraft in question, registered as VT-SLP (msn 36118), continues to operate for the carrier, a situation the lessor aims to halt. Cross Ocean Partners is also seeking access to the Boeing twinjet for inspection purposes.

The 2018 lease contract’s terms allowed VS MSN 36118 CAV to obtain payment orders for both overdue leases and future lease payments. The original lease spanned 96 months, with a return date in 2026. SpiceJet’s legal representation informed the court of the airline’s intention to “regularize” payments on VT-SLP, starting as early as December 2023.

Cross Ocean Partners is just one of several entities pursuing legal action against SpiceJet in various Indian courts. A High Court case initiated by Credit Suisse is currently on hold, pending the airline’s compliance with a settlement agreement. Simultaneously, another legal battle involving former majority shareholder Kalanithi Maran and associated entities remains active. Additionally, multiple lessors and suppliers, including Aircastle, Willis Lease Finance, Celestial Aviation Services, and Wilmington Trust SP Services (Dublin), are striving to have SpiceJet declared insolvent in the National Company Law Tribunal. The intensifying legal challenges paint a complex picture for the airline’s future.