Delhi HC summons SpiceJet in TCS recovery suit over unpaid technology dues

The Delhi High Court summoned SpiceJet after TCS filed a case to recover ₹2.34 crore for services provided between 2019 and 2023, saying the airline failed to clear 'long-pending dues'

The Delhi High Court has issued summons to SpiceJet in a recovery case filed by Tata Consultancy Services (TCS), according to a report by The Economic Times. The IT services major has alleged that the airline failed to clear long-pending dues for technology services provided over several years.

 

TCS is demanding ₹2.34 crore along with interest for services rendered between July 2019 and September 2023. According to its petition, SpiceJet did not honour invoices or adhere to agreed payment plans despite repeated reminders.

 

Counsel for TCS, Asav Rajan, told the court that the airline has "blatantly refused to pay" since 2020 and even skipped mediation sessions arranged by the Delhi High Court legal services committee, the news report said.

 

Justice Jyoti Singh, while issuing a notice last week, gave SpiceJet four weeks to respond. The matter is listed for the next hearing on November 14.   

 

Service agreement and disputes

 

The dispute traces back to a 2018 agreement between TCS and SpiceJet. Under this pact, TCS was tasked with developing and maintaining the airline’s SAP S/4 HANA system to streamline operations. The IT firm claims it continued providing services until 2023 despite payment delays, owing to its long-standing relationship with the carrier.

 

Even as late as January 2024, SpiceJet acknowledged the dues but failed to settle them, TCS alleged. A detailed invoice breakdown was shared, followed by multiple reminders but payments were not made. After a legal notice was served in June 2024, the airline still did not respond or release any funds, the petition added.

 

SpiceJet’s expansion plans

 

While dealing with the legal battle, SpiceJet is also pursuing fleet expansion. Last week, the airline said that it has signed a lease agreement to induct a wide-body Airbus A340 aircraft.

 

The plane will begin operations in the first week of October, according to a filing with the Bombay Stock Exchange.

 

“We are thrilled to introduce the Airbus A340 into our fleet as part of our ongoing efforts to enhance our service offerings and expand our domestic and international network. This aircraft will allow us to tap into new markets and expand our international footprint," said Debojo Maharshi, chief business officer of SpiceJet.   

 

  Initially, the A340 will be operated on a wet lease, where both the aircraft and crew are provided by the lessor. Later, it may move to a damp lease where the lessor supplies only the aircraft and cockpit crew, leaving cabin crew and maintenance to the airline.

 

SpiceJet plans to keep the wide-body in service for more than a year and is already in talks to lease a second A340. The development follows its recent announcement to induct 18 Boeing 737s, including four 737 MAX planes, from October 2025.