SpiceJet's engine lessor, Engine Lease Finance BV, has filed an application in the Delhi High Court alleging that the low-cost airline has not been fulfilling its payment obligations as per the undertaken agreements.
The lessor alleged that SpiceJet has only made partial payments and is yet to make complete payments as per its October undertaking. The Delhi High court upon hearing these submission on December 15 orally observed that the airline cannot flout its undertaking and asked the airline to file an affidavit on its undertaking to pay.
The case will now come up for hearing on December 19.
In October 2023, the lessor and SpiceJet arrived at an interim settlement. The engine lessor has agreed not to pursue the stay application against SpiceJet for now.
According to the terms of the settlement, SpiceJet must pay over $2 million to Engine Lease finance by January. SpiceJet has also undertaken to return the engine which is the bone of contention by January 25. However, the engine lessor will not revoke the termination and is at liberty to approach the court if SpiceJet does not comply with these undertakings.
On October 5, the Delhi HC gave SpiceJet time till October 16 to settle the dispute and noted that it would restrain the airline from using the engine if no settlement is arrived at.
On September 27, Engine Lease Finance approached court that the firm terminated its lease with SpiceJet and the airline had returned eight of its nine engines. As per the agreement, the airline cannot continue using the engine once the lease is terminated. The lessor sought the court's order to restrain SpiceJet from using their engine.
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 the Credit Suisse at the Supreme Court over non-payment of dues.
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