Delhi High Court Denies Urgent Hearing for Spicejet’s Engine Grounding Challenge

The Delhi High Court on Friday dismissed an urgent listing request by Spicejet to challenge a ruling that mandated the grounding of three aircraft engines by today. The plea, led by Spicejet’s senior advocate Amit Sibal, sought to prevent the immediate grounding and turnover of the engines to lessors, citing significant disruptions to the airline’s operations and passenger inconvenience.

The case, brought before Acting Chief Justice Manmohan and Justice Manmeet P S Arora, encountered a delay due to the unavailability of several judges. “It is very difficult to list it today. Let the learned judges read the papers. We will have it on Tuesday,” the bench stated, pushing the hearing to August 20.

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The controversy stems from an August 14 directive by a single judge, ordering the airline to ground three engines and arrange their return to lessors Team France 01 SAS and Sunbird France 02 SAS within 15 days. The directive also includes provisions for a prior inspection of the engines at Delhi airport.

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Spicejet argued the order’s timing would necessitate the grounding of two aircraft, severely affecting its schedule and causing significant distress to passengers with confirmed bookings. Despite these concerns, the bench emphasized the impracticality of an immediate review: “Let the airline manage with 19 aircraft and we will have the matter on Tuesday.”

In addition to grounding, the court’s previous ruling outlined financial obligations for Spicejet, maintaining the airline’s liability for an admitted outstanding amount of USD 4.8 million, among other weekly payments due for the engines’ use. The single judge’s decision emphasized Spicejet’s unequivocal admissions regarding its liabilities and highlighted the lessors’ irreparable losses due to the engines’ continued operation, which degrades their value.

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Spicejet’s legal troubles are compounded by the airline’s ongoing financial difficulties, evidenced by an admitted outstanding due of USD 2.67 million as of August 12, despite partial payments made earlier this year. The airline’s counsel sought an extension until September 30 to clear these dues, a plea that remains pending before the court.

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