New Delhi: The Supreme Court on Friday (September 20) upheld the Delhi High Court order directing the low-cost airline Spicejet to ground three aircraft engines on default of payment to the lessors.
A bench comprising Chief Justice of India (CJI) DY Chandrachud and Justices JB Pardiwala and Manoj Misra dismissed the appeal filed by SpiceJet challenging the September 11 High Court verdict.
“We will not interfere. It’s a correct order,” the apex court bench said.
Division bench of High Court refused to interfere with single bench order directing Spicejet to ground three aircraft engines
A High Court division bench comprising Justice Rajiv Shakdher and Justice Amit Bansal on September 11 refused to interfere with a single bench order directing the low-cost airline to ground three aircraft engines on payment default to the lessors – Team France 01 SAS and Sunbird France 02 SAS.
“The appeals (by Spicejet) are emblematic of the adage that fools create assets and wise men use them. The use of a lessor’s assets without recompense, on agreed terms, by the lessee often leads to consequences which disrupt the interests of both sides,” the division bench of the High Court said while refusing to interfere with the single bench order.
SpiceJet has violated an agreed interim arrangement for payment of dues, division bench noted
The division bench, while dismissing the appeal filed by Spicejet, said that the record reveals that SpiceJet is in default, and past and current outstanding dues remain unpaid and it has violated an agreed interim arrangement for payment of dues, which included a term that, upon breach, it would ground the engines that Team France and Sunbird France could then repossess.
Single bench directed Spicejet to ground 3 aircraft engines by August 16
Earlier, a single bench of the High Court on August 14 directed Spicejet to ground three aircraft engines by August 16 and hand over the possession of the engines to the lessors within 15 days. It also directed Spicejet to offer prior inspection of the engines to the lessors of the engines through their authorised representative at the Delhi airport within seven days.
“This court has no option but to direct the defendant (SpiceJet) to ground the three engines with effect from August 16, 2024. The defendant will take steps to ensure that the engines are redelivered to the plaintiff within 15 days from today (August 14),” a single bench of Justice Manmeet Pritam Singh Arora said in its August 14 order.
