The Delhi High Court on Tuesday rejected SpiceJet’s appeal to overturn an earlier decision that required the low-cost airline to ground three of its aircraft engines due to payment defaults. Justices Rajiv Shakdher and Amit Bansal dismissed the appeals, leaving the order by a single judge intact.
The dispute originated from a single judge’s ruling on August 14, directing SpiceJet to ground the three engines by August 16 and return them to their lessors, Team France 01 SAS and Sunbird France 02 SAS, within 15 days. The judge also mandated that SpiceJet facilitate a prior inspection of the engines at Delhi airport by the lessors’ authorized representative.
This decision was part of a broader legal action initiated by the lessors after the termination of their lease agreements with SpiceJet. They sought court intervention to enforce the return of the engines and recovery of outstanding dues, which the airline had failed to settle. The single judge’s order highlighted the airline’s continued default despite partial payments made between December 14, 2023, and May 24, 2024, totaling USD 7.18 million.
Additionally, the court clarified that returning the engines would not absolve SpiceJet of its financial obligations, which include an admitted outstanding amount of USD 4.8 million, as noted in a May 29, 2024, order. Despite the airline’s commitment to making further payments, including USD 1.48 million following the May court proceedings, there remains an admitted default of USD 2.67 million.
The counsel for SpiceJet acknowledged the default and requested an extension until September 30 to settle the dues, citing efforts to regularize the financial discrepancies.
