In a significant blow to SpiceJet, the Delhi High Court has refused to grant interim relief to the low-cost airline. On May 27, a bench of two judges denied SpiceJet’s petition seeking a stay on a May 15 order, which mandated the airline to return two aircraft and three engines.
Despite the airline’s appeal for reconsideration, the court decided against halting its previous order. Instead, Justice Rajiv Shakdher, leading the panel, extended the deadline for the return of the planes and engines from May 28 to June 17. The court emphasized the impropriety of issuing any order in SpiceJet’s favor when the airline owes over 120 crore rupees to its lessor.
The court highlighted that SpiceJet has no right to continue using the aircraft and engines without paying the lease dues, stating, “The lessors are not in the business of donation.”
During the hearing, senior advocate Amit Sibal argued that SpiceJet is prepared to pay $500,000 (approximately 4.15 crore rupees) weekly for the next five weeks. He reasoned that returning the aircraft and engines would significantly impact the airline, affecting nearly 10% of its fleet. Sibal noted that SpiceJet has already settled disputes with 15 lessors/stakeholders and plans to resolve remaining issues with TWC.
