SpiceJet (SG, Delhi International) is to head to court where it will take on five Irish lessors claiming over INR1 billion (USD16 million) in unpaid aircraft leases India's Economic Times has reported.

The firms - B&B Air Acquisition, Steddell Ltd, Torodell Ltd, Xavierdell Ltd and Virgodell Ltd - have petitioned the Madras High Court to have the carrier declared bankrupt before being liquidated in a bid to secure their monies.

All five state that while they last received basic leasing and MRO fees in November 2013, Spicejet did make partial repayments in November of last year.

However, having collectively terminated their B737-800 contracts with Spicejet in December 2014 before serving notices in January of this year, the lessors claim that accumulated interest coupled with the airline's unwillingness to negotiate a settlement has left them no option but to pursue a declaration of bankruptcy against the airline.

In February, Ireland's Babcock & Brown Aircraft Management (BBAM) moved to repossess six B737-800s amid claims of USD100 million in unpaid leasing dues and MRO fees while last week, a New Delhi High Court ordered the Directorate General of Civil Aviation (DGCA) to deregister six B737-800s from Spicejet's AOC following the termination of lease agreements by lessors AWAS Ireland Ltd and Wilmington Trust SP Services (Dublin) Ltd.

Spicejet on Monday said it had been able to reach a settlement with Wilmington Trust SP Services, in which the lessor had agreed to withdraw its court proceedings and deregistration of aircraft in return for SpiceJet satisfying certain unspecified terms of their agreement.

The retention of the aircraft is a corner-stone part of Spicejet's new owner Ajay Singh's recovery plan for the carrier. As part of his INR15 billion (USD243 million) buyout, Singh intends to grow Spicejet's fleet to twenty-six B737s by summer and thirty-three by the end of the year.