Why can't we attach assets: HC to SpiceJet

The Delhi High Court on Friday sought a response from SpiceJet as to why its assets should not be attached and sold to enforce the UK court decrees, which had directed the low-cost airline to pay $5.33 million and $8.49 million to aircraft lessor GASL Ireland Leasing A1 in February 2022 and May 2023, respectively.

However, SpiceJet contested the attachment of assets, saying that it would not augur well for the airline as it is in the process of raising funds. The airline said it is working to settle the matter soon with GASL as it has done with other creditors previously.

While noting SpiceJet's senior counsel Amit Sibal's submission that a settlement proposal will be made to the Irish lessor soon, Justice Vikas Mahajan gave a week's time to the carrier to file its reply and posted the matter for further hearing on July 19.

GASL senior counsel Jayant Mehta while seeking a direction to the airline to file an affidavit giving details of its assets submitted that Spicejet's status as a going concern remained doubtful and its assets should be attached and sold for the satisfaction of the UK court's award of around ₹135 crore.

However, Sibal opposed Mehta's submissions, saying there is no question of insolvency against SpiceJet as it has already raised ₹1,200 crore in equity funding. Out of the total amount, the airline has already received ₹500 crore and another ₹700 crore is due to come soon, Sibal said, adding the airline was also in the process of raising ₹2,000 crore soon.