Delhi High Court Directs SpiceJet To Pay Engine Lessors Amid Legal Dispute
The court instructed the low-cost airline to make a payment of $450,000 by Jan. 3, 2024.
SpiceJet Ltd. has faced a setback as the Delhi High Court issued a directive on Tuesday, instructing the low-cost airline to make a payment of $450,000 by Jan. 3, 2024, to settle its outstanding dues with two engine lessors.
The court specified that the payment should be made in installments, between Dec. 21 and Jan. 3.
The airline was mandated to submit an affidavit, outlining a comprehensive plan for the return of the engines.
The case will next be heard on Jan. 4, 2024.
The lessors in question, Team France 01 SAS and Sunbird France 02 SAS, filed a lawsuit alleging that SpiceJet had not fulfilled a payment obligation amounting to $12.9 million, spanning over two years. They sought a court order to prohibit the airline from utilising their three engines, even after the termination of the lease agreement.
Justice Rekha Palli, presiding over the case, expressed inclination towards restraining SpiceJet from using the engines, given the airline's acknowledgment of the outstanding debt to the lessors.
SpiceJet, informed the court that the airline anticipated a financial infusion by mid-January, assuring that the dues would be settled.
In response, the lessors contested the adequacy of the proposed payment, asserting that it constituted less than 10% of the total amount owed to them. They further argued that while SpiceJet had returned other engines, the airline chose to retain these specific engines.
The case sheds light on the financial disputes and contractual complexities between SpiceJet and its lessors, with the court closely monitoring the situation.
