The Delhi High Court enforced a UK court order requiring SpiceJet to return two aircraft and three engines. This decision follows a legal dispute involving the airline’s leasing agreements. SpiceJet must comply promptly to avoid further legal complications. The enforcement highlights the binding nature of international legal rulings.
![[Paper Leak Case] Delhi HC Granted Three-month Extension to Conclude the Trial](https://i0.wp.com/lawchakra.in/wp-content/uploads/2024/05/MicrosoftTeams-image-40.png?resize=500%2C300&ssl=1)
New Delhi: The Delhi High Court has issued a directive to SpiceJet, instructing the airline to adhere to a court order from the United Kingdom (UK) and return two leased aircraft and three engines to TWC Aviation Capital (TWC).
The court’s decision based on the airline’s actions of removing the engines and utilizing them in other aircraft, which Justice Prathiba M Singh, the single-judge presiding over the case, deemed to have caused significant damage.
Read Also: SpiceJet Clears Outstanding Dues, Credit Suisse Informs Supreme Court
The Court noted,
“Regardless, separating the engines from the aircraft in this way might not be allowed. Using the aircraft frames and engines separately could significantly reduce their value for the plaintiff. Additionally, the defendant has not made the required payments.”
In the initial interim order issued in April 2024 for the ongoing case, TWC (Plaintiffs) granted permission to assume possession of two aircraft as receivers. They instructed not to relocate the aircraft without Court approval, while SpiceJet permitted to utilize the engines.
Through the latest ruling, the Court mandated the unconditional transfer of the two aircraft and three engines to TWC.
Citing SpiceJet’s failure to meet lease rent obligations to TWC Aviation, the Court declared,
“The Court has no alternative but to instruct that the aircraft, along with the engines and all pertinent records concerning their technical status and usage, be handed over to the Plaintiff by May 28, 2024,”
TWC Aviation initiated a lawsuit in the High Court to enforce two orders issued by a United Kingdom (UK) court in March. These orders specifically instructed SpiceJet to return the leased aircraft and engines to TWC. TWC further alleged that three engines from the leased aircraft removed and utilized in other aircraft.
TWC asserted its ownership rights over two Boeing 737-800 aircraft and three aircraft engines that leased to SpiceJet. They claimed that a lease agreement was signed on May 27, 2019, stipulating a 12-month lease period for the aircraft at a monthly rent of Rs. 180,000.
SpiceJet has been accused by TWC of failing to fulfil its lease rental payments. Due to the challenges posed by the COVID-19 pandemic, amendments made to the agreement to accommodate payment difficulties. However, SpiceJet allegedly breached the amended agreement as well, according to information presented in court.
Furthermore, it claimed that three engines from the leased aircraft removed and utilized in other planes without authorization.
Subsequently, TWC initiated legal proceedings in London, as per the jurisdictional court designated in the agreement between TWC and SpiceJet. In March 2024, the UK Court issued two orders in favour of TWC. One of these orders required SpiceJet to return the leased aircraft and engines to TWC.
Following SpiceJet‘s failure to comply with the UK Court orders, TWC approached the Delhi High Court by filing a civil suit, seeking Indian court intervention to enforce the UK Court‘s orders against SpiceJet.
The Delhi High Court determined that the suit was admissible and proceeded to grant interim relief in favour of TWC.
The Court remarked,
“The orders issued by the UK court appear enforceable in these proceedings under Section 13 in conjunction with Section 44A of the CPC. SpiceJet, the Defendant, has already been given a chance to present its defence in the UK courts,”
The next hearing for the matter scheduled for May 31.
Representing TWC Aviation Capital Limited are Senior Advocate Ashish Dholakia, as well as advocates Ravi Nath, Ankur Mahindro, Rohan Taneja, Aditya Kapur, Siddhant, Abhijit Mittal, and Ankesh Tripathi.
SpiceJet being represented by Senior Advocate Sandeep Sethi, along with advocates KR Sasiprabhu, Kartikeya Asthana, Sumer Dev Seth, and Riya Kumar.