Next Story
Newszop

TCS sues SpiceJet: Delhi HC summons airline; IT firm alleges unpaid dues of Rs 2.34 crore

Send Push
The Delhi High Court has summoned SpiceJet to respond to a recovery petition filed by Tata Consultancy Services (TCS), which is seeking the attachment of the airline’s property at Terminal 1D of Indira Gandhi International Airport.

TCS is claiming Rs 2.34 crore, along with interest, for services provided to the airline between July 2019 and September 2023.

The IT giant ’s lawyer, Asav Rajan, told the court that SpiceJet has "blatantly refused to pay" despite multiple invoices and payment plans offered since 2020. He added that the airline has ignored repeated reminders and even failed to attend mediation sessions arranged by the Delhi High Court Legal Services Committee.

Justice Jyoti Singh has now issued a notice to the airline, giving it four weeks to respond. The next hearing has been scheduled for 14 November, according to ET.

The case stems from a 2018 agreement under which TCS was responsible for developing and supporting SpiceJet’s ‘SAP S/4 HANA’ software system, aimed at streamlining the airline’s operations. The IT firm continued to provide these services until 2023.

According to the petition, TCS made several attempts to recover the dues, including accepting payment plans offered by SpiceJet to accommodate its financial situation. Despite these efforts, the airline failed to settle the outstanding amount.

The petition also states that even in January 2024, SpiceJet acknowledged the pending payments but did not clear them, despite receiving a detailed invoice breakdown. TCS issued a formal legal notice on June 15 2024, but the airline neither responded nor made any payment, ET reported.

The IT firm says it continued to provide services for several years due to its long-standing relationship with the airline, highlighting the prolonged nature of the dispute.
Loving Newspoint? Download the app now