Delhi High Court Orders SpiceJet To Return Cannibalized Aircraft And Engines
Court sets deadline of June 17 for the return of the aircraft, engines, and technical records.
The Delhi High Court has upheld a previous order requiring SpiceJet Ltd. to comply with a UK court ruling and return two leased aircraft and three engines to TWC Aviation Capital (TWC). The court has set a deadline of June 17 for the return of the aircraft, engines, and technical records.
On May 15, after being particularly concerned by reports that SpiceJet had "cannibalized" parts from the aircraft and engines, a single judge bench of the Delhi High Court issued an interim order directing SpiceJet to return the aircraft and engines to TWC. The bench had also noted that the airline had failed to meet earlier payment deadlines.
TWC had initially sought the enforcement of the U.K. court's order earlier this year, demanding the return of the leased equipment and payment of outstanding dues.
What Was Argued?
Senior Advocate Amit Sibal represented Spicejet, while Senior Advocate Dayan Krishnan represented the lessor.
During the hearing, Sibal argued that SpiceJet was willing to pay $500,000 every week for the next five weeks. He stated that returning the aircraft and engines would cause significant losses for the airline, as it would remove nearly 10% of its fleet.
Sibal also mentioned that SpiceJet had already settled disputes with 15 other lessors and stakeholders and intended to resolve the issue with TWC as well.
Krishnan argued that TWC has a favourable order from an English court, which SpiceJet has yet to follow. He also said SpiceJet hasn't just failed to pay the lease dues but has also taken parts from the leased aircraft and engines to use in their other planes.
On hearing the arguments, the court suggested that if SpiceJet withdrew their appeal, they would be given some time to comply with the single judge’s order. After this, the airline agreed to act on this suggestion.
The court made it clear that no interim order would be issued and highlighted the seriousness of the situation, mentioning an outstanding amount of ₹120 crore and the unauthorised removal of parts from the aircraft and engines.
