The Delhi High Court on February 22 directed low-cost airline SpiceJet to pay $2 million against its dues to two engine lessors by February 29.
The HC has warned the airline that in the event it does not pay the money, it will be constrained to pass orders in the application seeking the engine's grounding.
On January 29, the HC asked SpiceJet to pay $4 million by February 15, however the airline paid only $2 million by the deadline. Senior advocate Sandeep Sethi, who appeared for the airline, told the court that they could not pay the entire amount due to financial constraints and urged it to grant the airline extension till February 29.
Senior advocate Rajshekar Rao, who appeared for the lessors named Team France 01 SAS and Sunbird France 02 SAS told the court that while the airline is not paying admitted dues to its lessors, its chairman and managing director Ajay Singh has in his personal capacity placed a bid for grounded airline Go First. The court, on hearing these submissions, asked the lessors to provide documents substantiating this.
The case will now come up for hearing in the second week of March. In the meanwhile, the lessors can move the court again if SpiceJet does not pay them by February 29.
In December 2023, Delhi High Court had directed SpiceJet to pay $450,000 to the lessors in two weeks. While the airline had paid the amount, the lessors pushed for a further payment considering the amount outstanding.
The lessors, Team France 01 SAS and Sunbird France 02 SAS, moved a suit alleging that the airline has not paid them a sum of $12.9 million for over two years. They furthermore asked the court to restrain the airline from using their three engines despite the termination of the lease.
Rao and lawyer Anandh Venkatramani, who represented the lessors, were briefed by Tuli & Co's partner Saket Satapathy.
SpiceJet raises funds:
SpiceJet on February 22 said it has secured an additional Rs 316 crore, taking its total funds raised to Rs 1,060 crore through a preferential share issue.
The fresh capital infusion in the struggling airline comes amid its recent announcement of slashing its workforce by 10-15 percent. In January, SpiceJet had received Rs 744 crore as the first tranche of funds through the allotment of securities on a preferential basis.
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