The Delhi High Court on Monday directed SpiceJet to file a response to a petition seeking the execution of a prior court order that mandated the grounding and return of three aircraft engines to their lessors. Justice Manmeet Pritam Singh Arora also requested that the low-cost airline submit an affidavit detailing its assets and scheduled the next hearing for November 13.
In addition to SpiceJet, the court issued a notice to the Directorate General of Civil Aviation (DGCA), instructing a competent officer to be present during the next hearing with a status report verifying compliance with the court’s August 14 order, which includes information on the re-delivery status of the engines.
Previously, the High Court had ordered on August 14 that SpiceJet ground the three engines by August 16 and return them to the lessors, Team France 01 SAS and Sunbird France 02 SAS, within 15 days. The airline was also instructed to allow the lessors’ authorized representatives to inspect the engines at Delhi airport within seven days.
Despite SpiceJet’s appeal to a division bench and subsequent appeal to the Supreme Court, both courts upheld the initial High Court order.
During Monday’s proceedings, SpiceJet’s counsel stated that the airline is prepared to return the engines but highlighted a delay due to the need to procure a technical device known as an engine stand. Senior advocate Amit Sibal, representing SpiceJet, mentioned, “We are not using the engines, but it will take approximately 30 days at our end to procure those stands. If they (lessors) can procure it sooner, they are at liberty to do so.”
This submission was contested by senior advocate Rajshekhar Rao, representing the lessors, who argued that SpiceJet had ample time since the August 14 directive to arrange for the engine stands and their failure to do so was unacceptable. The court granted the lessors the option to procure an engine stand sooner at SpiceJet’s expense.
The court also addressed the lessors’ concerns regarding inspection of the engines, with SpiceJet’s counsel committing to facilitate the inspection by October 7, provided the lessors submit the names of their representatives promptly.
The ongoing legal battle stems from the lessors’ pleas after lease agreements were terminated, requesting the court to direct SpiceJet to return the engines and settle outstanding dues. Despite the termination, SpiceJet had not complied, leading to the execution petition.
The court clarified that the return of the engines would not absolve SpiceJet of its financial liabilities, which include an admitted outstanding payment of USD 4.8 million, as determined in a May 29, 2024 order. The lessors are entitled to recover this amount through the execution of the order.
