# In the matter of Spicejet Limited

> NCLT judgment dated 2024-01-29. Citation: TCN-2024-NCLT-02867. Wilmington Trust SP Services (Dublin) Limited, claiming to be an operational creditor, filed an…

- **Court:** NCLT
- **Order date:** 29 Jan 2024
- **Citation:** TCN-2024-NCLT-02867
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/spicejet-limited-aa177e00

## Summary

### Background

Wilmington Trust SP Services (Dublin) Limited, claiming to be an operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against SpiceJet Limited, the corporate debtor, based on unpaid lease rentals for an aircraft. The application was filed due to alleged defaults in payments starting from July 30, 2021, related to a lease agreement dated August 7, 2013. The operational creditor claimed a total amount due of US$11,184,198. The corporate debtor contested the maintainability of the petition, arguing that Wilmington was acting as a trustee and not in its individual capacity as a lessor, and therefore not an operational creditor under the IBC.

## Facts

Wilmington Trust SP Services (Dublin) Limited (Wilmington) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against SpiceJet Limited (SpiceJet). Wilmington claimed to be an operational creditor based on unpaid lease rentals for a Boeing 737-800 aircraft (manufacturer's serial number 41398). The lease agreement was dated August 7, 2013, and amended over time. The alleged default in payments started from July 30, 2021, with a total amount due of US$11,184,198. SpiceJet argued that Wilmington was acting as a trustee and not as the actual lessor, therefore not qualifying as an operational creditor under the IBC. Wilmington filed written submissions dated 15.10.2023, which were

…

## Issues and analysis

### Issue 1: Whether Wilmington Trust SP Services (Dublin) Limited qualifies as an 'Operational Creditor' under …

**Ratio:** Section 5(20) of the IBC defines an operational creditor as a person to whom an

…

**Reasoning:** The Adjudicating Authority reasoned that Wilmington, acting as a trustee, did not have a

…

**Interpretation:** The interpretation of Section 5(20) requires a direct relationship between the

…

**Application:** In this case, Wilmington acted as a trustee for BOC Aviation (Ireland) Limited

…

## Parties

- **Judges:** MAHENDRA KHANDELWA…; RAHUL BHA…
- **Appellants:** Wilmington Trust…
- **Respondents:** SpiceJet L…

## Timeline

- **2013-08-07 — Lease Agreeme…**: The Operational Creditor and the Corporate Debtor entered into a Lease Agreement dated…
- **2021-02-05 — Last Amendment…**: Date of the Last Amendment Agreement,…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/spicejet-limited-aa177e00