Delhi HC refuses to set aside directive requiring SpiceJet to re-deliver engines to lessors

New Delhi: A division bench of the Delhi High Court on Wednesday refused to interfere with a directive requiring low-cost carrier SpiceJet to ground three engines over the failure of payment of lessors.

Earlier, a single-judge bench of Justice Manmeet Singh Arora asked the debt-ridden airline to ground three engines by February 16, apart from taking steps to ensure that the engines are re-delivered to lessors within 15 days.

Challenging the single-judge bench’s order, SpiceJet moved an appeal before the division bench of the Delhi High Court and prayed for an urgent hearing.

In his judgment, Justice Arora had observed, “The defendant (SpiceJet) is a defaulter and has no legal and 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 and in fact permitting the defendant to continue the use of the engines without payment would only cause financial distress to the plaintiff (lessors).”

Before this, SpiceJet was permitted to continue the use of the engines after it undertook before the Delhi High Court on May 29 that it would repay the outstanding lease amounts along with the weekly payments.

It clarified that the return of the engines does not absolve the airline from its liability of payments which have admittedly fallen due.