Delhi HC upholds order directing SpiceJet Airlines to ground three of its engines
Sep 11, 2024
New Delhi [India], September 11 : The Delhi High Court on Wednesday, through a judgment passed, upheld the single judge's order directing SpiceJet Air to ground three of its engines due to default on payments to French engine lessors.
Recently SpiceJet moved an appeal challenging an order to ground three engines and return them to their lessors, Team France 01 SAS and Sunbird France 02 SAS.
The Division Bench of Justices Rajiv Shakdher and Amit Bansal found "no suitable reason" to interfere with the order, maintaining the directive for SpiceJet to comply with the engine grounding.
The bench of Justice Manmeet Pritam Singh Arora in an order passed on August 14, 2024, had initially directed SpiceJet to ground the engines and return them within the specified timeframe.
The bench stated that this Court finds favour in the submission of the plaintiff/lessors that it is suffering irreparable loss due to the continuing use of Engines by the defendant/SpiceJet Ltd
as engines are a depreciating asset which suffers wear and tear.
"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, said the bench of Justice Manmeet Pritam Singh Arora.
The Delhi High Court on August 14, passed the order on the pleas from Team France 01 SAS and Sunbird France 02 SAS, who claimed that SpiceJet owes them several million dollars. The court directed SpiceJet to ground the engines by August 16 and return them to the lessors within 15 days.
The court also directed SpiceJet Ltd to allow the plaintiffs, Team France 01 SAS and Sunbird France 02 SAS, to inspect the engines at Delhi Airport within seven days. SpiceJet is also required to provide passes to the plaintiffs' authorised representatives to facilitate this inspection.
