SpiceJet Told To File Affidavit On Payments To Engine Lessor

The Delhi High Court told SpiceJet Ltd. on Friday to file an affidavit regarding its payment undertaking after Engine Lease Finance BV alleged that the cash-strapped airline had not been adhering to its commitments.

SpiceJet has made only partial payments and has yet to fulfill its complete payment obligations as per the agreement made in October, according to the engine lessor.

A single-judge bench of Justice Sachin Datta orally observed that the low-cost carrier cannot disregard its commitment and instructed the airline to file the affidavit. The case is scheduled for further hearing on Dec. 19.

Engine Lease had approached the court earlier, seeking an order for the airline to cease using a leased engine and return it. The lessor had leased nine engines to SpiceJet and now seeks possession of the remaining engine that has not been returned. The court had granted SpiceJet an opportunity to present its case.

SpiceJet had recently paid Rs 100 crore owed to Kal Airways as directed by the court. Following the Supreme Court's orders, it also made a payment of $1.5 million to Credit Suisse Group AG on Sept. 14.

The National Company Law Tribunal has also disclosed previously that five insolvency petitions against SpiceJet were filed by lessors. The court advised the airline to explore a settlement with the lessors in its best interest.