Engine Lease Finance BV approached the Delhi High Court on Wednesday against SpiceJet Ltd., seeking a direction to the beleaguered airline to stop using a leased engine and return it.
It had leased nine engines to SpiceJet and has now sought possession of the remaining one engine that is yet to be returned.
The matter came before the single-judge bench of Justice Sachin Dutta. During the proceedings, the bench showed inclination towards granting the lessor's request but gave SpiceJet an opportunity to be heard.
The court issued a notice to the airline, and the matter is now likely to come up for hearing on Oct. 6.
SpiceJet has recently paid Rs 100 crore it owed to Kal Airways as directed by the Delhi High Court. Following the Supreme Court's orders, it also made a payment of $1.5 million to Credit Suisse Group AG on Sept. 14. In a previous court hearing on Sept. 11, the apex court expressed concern about SpiceJet's failure to meet its financial obligations to the Swiss investment bank.
The National Company Law Tribunal revealed that five insolvency petitions had been filed against SpiceJet, all of which were initiated by lessors rather than financial institutions. Therefore, the court advised the airline to consider reaching a settlement with the lessors, which would be in its best interest.
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