The Delhi High Court has denied an urgent listing of SpiceJet's plea challenging an order to ground three aircraft engines by Friday and hand them over to lessors within 15 days. The court scheduled the hearing for August 20, stating it was not possible to hear the case earlier. SpiceJet argues that grounding the engines would disrupt operations and cause significant inconvenience to passengers.
SpiceJet's plea delayed until August 20
On Friday, the Delhi High Court refused to grant an urgent hearing for SpiceJet's plea challenging a court order to ground three aircraft engines by the end of the day. The airline is also required to hand over the engines to their lessors within 15 days. The plea was mentioned for urgent consideration before a bench of Acting Chief Justice Manmohan and Justice Manmeet P S Arora, but the court stated that listing the plea on the same day was not feasible. The hearing is now scheduled for August 20.
SpiceJet's concerns over engine grounding
Senior advocate Amit Sibal, representing SpiceJet, urged the court to consider the plea in the post-lunch session due to the "grave urgency" of the matter. Sibal argued that grounding the three engines would result in the grounding of two aircraft, leading to significant disruption for passengers, as flights would need to be cancelled. SpiceJet currently operates 21 aircraft, and grounding two would further strain the airline's operations. However, the court responded that it was impossible to review the case documents in such a short time, advising the airline to manage its operations with 19 aircraft until the hearing on Tuesday.
Background of the case
The case stems from an August 14 order by a single judge, directing SpiceJet to ground the three engines and deliver them to the lessors, Team France 01 SAS and Sunbird France 02 SAS, within 15 days. The order also required the airline to allow prior inspection of the engines at Delhi airport within seven days. The judge issued this directive in response to pleas from the lessors, who sought to reclaim the engines following the termination of lease agreements.
Financial disputes and court's findings
The single judge's order emphasised that SpiceJet had made unequivocal admissions regarding its liability to the lessors. The court noted that the airline had defaulted on payments, leading to an admitted outstanding balance of USD 2.67 million. Despite these admissions, SpiceJet requested an extension until September 30 to clear the dues, citing efforts to regularise the defaults.
The court found that the lessors were suffering "irreparable loss" due to the continued use of the engines by SpiceJet, which it described as a "defaulter." The judge concluded that allowing SpiceJet to continue using the engines without payment would further financially strain the lessors and ordered the airline to comply with the lease terms.
The case highlights ongoing financial difficulties for SpiceJet, as it struggles to meet its obligations to lessors while maintaining its fleet.
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