Tech Services Provider Raymach Files Insolvency Plea Against SpiceJet Citing Dues Worth Rs 2.7 Crore

The plea came up for hearing at the National Company Law Tribunal (NCLT) in New Delhi on November 30, and the tribunal sought a response from the airline.

Low-cost airline SpiceJet seems to be facing issues again as a tech services provider has moved an insolvency plea against the airline. Raymach Technologies Private Limited, which claims to have provided business consulting and technical support services to SpiceJet, has filed a plea seeking an insolvency resolution process against the airline, stating that the carrier owes them Rs 2.7 crore.

The plea came up for hearing at the National Company Law Tribunal (NCLT) in New Delhi on November 30, and the tribunal sought a response from the airline, reported Moneycontrol. The case is now possibly set for a hearing on January 9, 2024. 

Representing Raymach, lawyer Bharat Arora stated that the firm provided technical support staff to SpiceJet periodically over the last four years. The firm also sent invoices to the airline repeatedly for the services they provided and the carrier didn’t dispute these charges. However, Arora noted, that when Raymach sent a notice under the Insolvency and Bankruptcy Code (IBC), 2016, the airline denied having received any services from the company. 

Arora brought the tribunal’s attention to multiple correspondences between the two parties, and cited instances where SpiceJet acknowledged Raymach’s employees being deployed in their offices. 

SpiceJet's Recent History With Insolvency Pleas

The tech firm’s insolvency plea against SpiceJet marks the sixth such plea against the airline at NCLT Delhi in 2023. Earlier in the year, four aircraft lessors filed five insolvency proceeding pleas against the carrier alleging non-payment of dues. These included Aircastle Ireland Ltd, Willis Lease Corporation, Wilmington and Celestial, who filed petitions urging NCLT to admit SpiceJet to the insolvency proceedings to help them recover their dues. 

However, the Tribunal issued notice only for the first plea from Aircastle, and urged the airline to settle with the lessors. Earlier in August, the carrier distributed around 48 million shares to nine aircraft lessors to clear dues worth Rs 2.31 billion. 

Earlier in July 2023, real estate firm Acres Buildwell Private Limited also withdrew its insolvency plea against SpiceJet. Both the parties informed the Tribunal that they had reached a settlement amongst themselves, as such the authority passed an order allowing the plea to be withdrawn.