New Delhi, 11th Sept. The Delhi High Court on Tuesday upheld an order directing low-cost airline SpiceJet to ground three aircraft engines due to defaulting on payments to engine lessors.
The bench, comprising Justices Rajiv Shakdher and Amit Bansal, declined to interfere with the single judge’s earlier decision, which mandated the grounding of the engines and their return to the lessors, Team France 01 SAS and Sunbird France 02 SAS.
The single judge’s order, issued on August 14, required SpiceJet to ground the engines by August 16 and deliver them to the lessors within 15 days. The airline was also instructed to provide prior inspection access to the engines for the lessors’ authorized representatives at Delhi airport within seven days.
The court’s decision followed pleas from the lessors, who sought the return of the engines after the termination of lease agreements due to SpiceJet’s failure to pay outstanding dues. The court emphasized that while the airline must return the engines, it remains liable for unpaid amounts totaling USD 4.8 million and other weekly payments as stipulated in a prior order from May 29, 2024.
The lessors had argued that despite SpiceJet’s recent payments totaling USD 7.18 million between December 2023 and May 2024, there remained an outstanding default of USD 2.67 million as of August 12. The airline’s counsel had requested an extension until September 30 to clear these dues, citing ongoing efforts to address the defaults.
The court ruled that SpiceJet, described as a “defaulter,” lacked the legal right to continue using the engines and must comply with the directive to ground and return them.
