The Delhi High Court has agreed to hear SpiceJet’s appeal against a recent order that mandates the airline to ground three of its aircraft engines and return them to their lessors, Team France 01 SAS and Sunbird France 02 SAS, within 15 days, reported ANI.
The plea was mentioned on Friday by SpiceJet’s legal counsel, who requested an urgent listing of the case before a bench led by Justice Manmohan and Justice Tushar Rao Gedela. However, the court declined to hear the matter immediately.
The controversy stems from an August 14, 2024, order by Justice Manmeet Pritam Singh Arora, which directed SpiceJet to ground the engines by August 16 and return them within the stipulated period. The court found merit in the lessors’ argument that they were suffering irreparable losses due to SpiceJet’s continued use of the engines, which are considered depreciating assets subject to wear and tear.
“The defendant is a defaulter and has no legal or contractual right to continue the use of the engines. The inability of the defendant to pay the admitted outstanding dues is writ large on the face of the record,” stated Justice Manmeet Pritam Singh Arora in the order. The court also noted that allowing SpiceJet to continue using the engines without payment would further financially distress the plaintiffs, thereby tilting the balance of convenience against the airline.
The lessors, Team France 01 SAS and Sunbird France 02 SAS, had filed the plea claiming that SpiceJet owed them several million dollars. In response, the court directed the airline not only to ground the engines but also to facilitate an inspection by the plaintiffs’ authorized representatives at Delhi Airport within seven days. SpiceJet is required to provide passes to the plaintiffs’ representatives to carry out this inspection.
The case highlights the ongoing financial challenges faced by SpiceJet and the growing tensions between airlines and lessors in the aviation industry. The Delhi High Court’s decision in this matter will be closely watched by industry stakeholders.
With inputs from ANI.