Delhi HC agree to hear SpiceJet's plea challenging order to ground three engines and return them to their lessors
Aug 16, 2024
New Delhi [India], August 16 : The Delhi High Court has agreed to consider SpiceJet's plea challenging an order to ground three engines and return them to their lessors, Team France 01 SAS and Sunbird France 02 SAS, within 15 days.
The matter was mentioned on Friday by Spicejet Counsel for urgent listing before the bench led by Justice Manmohan and Justice Manmeet Pritam Singh Arora. However, the court has declined to hear the matter immediately today.
Earlier the single judge bench in an order passed on August 14, 2024, initially directed SpiceJet to ground the engines by August 16 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 that suffers 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 and in fact, permitting the defendant to continue the use of the engines without payment would only cause financial distress to the plaintiff and therefore, the balance of convenience is against the defendant and in favour of the plaintiff, said the Court.
On August 14, the Delhi High Court passed the order on the pleas from Team France 01 SAS and Sunbird France 02 SAS, who claimed that SpiceJet owed 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.
