The Delhi High Court has directed SpiceJet to comply with a UK court order and return two leased aircraft and three engines to the lessor, TWC Aviation Capital, within a specified timeframe.
NEW DELHI: Today (May 27th): The Delhi High Court refused to interfere with the order of a single judge directing SpiceJet, the low-cost Indian airline, to comply with a United Kingdom (UK) court order and return two leased aircraft and three engines to TWC Aviation Capital (TWC), the lessor.
READ ALSO: SpiceJet Clears Outstanding Dues, Credit Suisse Informs Supreme Court
The Division Bench of Justices Rajiv Shakdher and Amit Bansal made it clear that they would not grant any interim relief to SpiceJet, citing the airline’s outstanding debt of nearly Rs 120 crore to the lessor.
The court noted that SpiceJet had “cannibalised the aircraft” and “taken away the engines,” which was a prima facie view.
“We are not inclined to grant any interim order. We have considered your arguments, but no interim order will be given. The outstanding amount of Rs 120 crore… you have dismantled the aircraft and removed the engines; that is our preliminary observation,” the Court stated.
Senior Advocate Amit Sibal, appearing for SpiceJet, argued that the company is struggling financially, and if it meets the same fate as Go Air, it would lead to a virtual duopoly in the airline industry. However, the court remained firm in its decision, stating that it would not grant any interim order.
The court then suggested that if SpiceJet withdraws the appeal, it would be given some time to comply with the single-judge’s order. SpiceJet agreed to the suggestion and withdrew the plea.
READ ALSO: Delhi HC Enforces UK Court Order: SpiceJet to Return Two Aircraft, Three Engines
The Division Bench then directed that the aircraft, engines, and technical records be returned by June 17, 2024.
This decision follows the single-judge’s order on May 15, 2024, which directed SpiceJet to return the aircraft and engines by May 28, 2024.
The case was initiated by TWC, which had filed a case before the single judge to enforce two orders passed in March by a court in the UK. These orders directed SpiceJet to return the leased aircraft and engines to TWC.
According to TWC, a lease agreement dated May 27, 2019, was entered into with SpiceJet to lease two Boeing 737-800 aircraft and three aircraft engines for 12 months at a basic rent of $180,000 per month.
However, TWC alleged that SpiceJet failed to make lease rental payments and that three engines from the leased aircraft were removed and used in other planes.
