The Delhi High Court on Monday upheld a previous ruling requiring SpiceJet to ground three of its engines due to overdue payments to French lessors. SpiceJet had appealed against an earlier decision to return the engines to Team France 01 SAS and Sunbird France 02 SAS, but the Division Bench, consisting of Justices Rajiv Shakdher and Amit Bansal, found no compelling reason to alter the initial order.
The order in question was originally issued by Justice Manmeet Pritam Singh Arora on August 14, 2024. It mandated that SpiceJet ground and return the engines within a specified timeframe. The court supported the lessors’ claim that continued use of the engines, which are depreciating assets, was causing them irreparable financial harm.
Justice Arora’s bench highlighted that SpiceJet had defaulted on payments and lacked the legal right to retain the engines. Allowing SpiceJet to continue using them without settling the dues would only exacerbate the financial strain on the lessors. The court’s decision reflects that the balance of convenience favored the lessors.
The August 14 order required SpiceJet to ground the engines by August 16 and return them within 15 days. Additionally, SpiceJet must permit Team France 01 SAS and Sunbird France 02 SAS to inspect the engines at Delhi Airport within seven days, providing passes to their authorized representatives to facilitate this process.