Delhi HC directs SpiceJet to pay $450,000 to two engine lessors by January 3

SpiceJet has also been asked to file an affidavit laying out a plan to return these engines. The case will now come up for hearing on January 4

In a setback for SpiceJet, the Delhi High Court on December 19 directed low-cost airline SpiceJet to pay $450,000 by January 3 against its dues to two engine lessors.

The amount is to be paid in instalments from December 21 to January 3. SpiceJet has also been asked to file an affidavit laying out a plan to return these engines. The case will now come up for hearing on January 4.

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.

Justice Rekha Palli, who heard the case remarked that she was inclined to restrain SpiceJet from using these engines as the airline is not disputing the fact that they owe money to the lessor. Senior advocate Sandeep Sethi, who appeared for the airline told the court that they were expecting an infusion of funds by mid-January and will be able to pay the dues to the lessor. He further told the court that they were ready to pay $ 2 lakhs by the end of this month.

Senior advocate Rajshekar Rao and lawyer Anandh Venkatramani, who appeared for the lessor told the court that the money the airline was offering to pay did not even constitute 10 percent of what was owed to them. They further argued that the airline had returned all the other engines however, they chose to retain these three engines.

The court on hearing these parties warned the airline of the consequences if it did not pay the money.

Engine Lease Finance Corporation was represented by lawyer Anandh Venkatramani who were briefed by Tuli & Co's partner Saket Satapathy.

Also read: SpiceJet's bid for Go First: Can the ailing revive the dead?

SpiceJet and lessors

In 2023, four aircraft lessors filed five insolvency pleas in the National Company Law Tribunal (NCLT) against SpiceJet in 2023 for the non-payment of dues. Aircastle Ireland Ltd, Willis Lease Corporation, Wilmington and Celestial filed petitions, asking NCLT to admit SpiceJet to the insolvency process to enable them to recover their dues.

In early December 2023, the NCLT dismissed a plea to initiate insolvency against SpiceJet filed by aircraft lessor Willis Lease Finance over unpaid dues. SpiceJet is also fighting cases against Credit Suisse at the Supreme Court over non-payment of dues.