NEW DELHI: The Delhi high court on Wednesday upheld an earlier ruling directing SpiceJet Airlines to ground three of its aircraft engines due to payment defaults to French engine lessors. The court rejected SpiceJet’s appeal against the order, which required the airline to return the engines to the lessors, Team France 01 SAS and Sunbird France 02 SAS.
A division bench comprising Justices Rajiv Shakdher and Amit Bansal found no reason to overturn the August 14 ruling passed by Justice Manmeet Pritam Singh Arora. The court had initially directed SpiceJet to ground the engines and return them within a specified period, following claims from the lessors that the airline had defaulted on payments amounting to several million dollars.
Bench of justice Manmeet Pritam Singh Arora said, “The defendant 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 infact permitting the defendant to continue the use of the Engines without payment would only cause the financial distress to the plaintiff and therefore, the balance of convenience is against the defendant and in favour of the plaintiff.”
SpiceJet was initially ordered to ground the engines by August 16 and return them to the lessors within 15 days. Additionally, the court directed SpiceJet to allow the lessors to inspect the engines at Delhi Airport within seven days and to provide necessary passes for the inspection by the lessors’ authorized representatives.
SpiceJet’s appeal against this order was dismissed by the division bench, which upheld the original directive.
A division bench comprising Justices Rajiv Shakdher and Amit Bansal found no reason to overturn the August 14 ruling passed by Justice Manmeet Pritam Singh Arora. The court had initially directed SpiceJet to ground the engines and return them within a specified period, following claims from the lessors that the airline had defaulted on payments amounting to several million dollars.
Bench of justice Manmeet Pritam Singh Arora said, “The defendant 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 infact permitting the defendant to continue the use of the Engines without payment would only cause the financial distress to the plaintiff and therefore, the balance of convenience is against the defendant and in favour of the plaintiff.”
SpiceJet was initially ordered to ground the engines by August 16 and return them to the lessors within 15 days. Additionally, the court directed SpiceJet to allow the lessors to inspect the engines at Delhi Airport within seven days and to provide necessary passes for the inspection by the lessors’ authorized representatives.
SpiceJet’s appeal against this order was dismissed by the division bench, which upheld the original directive.
