New Delhi: The Delhi High Court on Wednesday (September 11) refused to interfere with a single bench order directing low-cost airline Spicejet to ground three aircraft engines on payment default to the lessors of these engines.
A bench comprising Justice Rajiv Shakdher and Justice Amit Bansal was hearing an appeal filed by Spicejet challenging the August 14 order of the single judge directing it to ground three aircraft engines by August 16 and hand over the possession of the engines to the lessors within 15 days.
High Court’s single bench order came on a plea by lessors
A single bench of Justice Manmeet Pritam Singh Arora on August 14 directed the low-cost airline Spicejet to ground the three engines by August 16 on a plea by lessors – Team France 01 SAS and Sunbird France 02 SAS -seeking a direction to the airline to handover possession of three engines in view of the termination of the lease agreements.
What did the lessors tell the single bench of the High Court?
The lessors told the High Court that it had directed Spicejet to ground and re-deliver the aircraft engines and pay all the outstanding dues following the termination of the lease agreements and had also sent a notice in November last year for inspection, grounding and re-delivery of the aircraft engines and directing it to immediately cease, halt all operations and ground the engines on or before November 30, 2023, however, Spicejet failed to comply with the notices of termination.
Defendant Spicejet is a defaulter, has no legal and contractual right to continue use of engines, single bench said
The single bench of the High Court, while directing Spicejet to ground three aircraft engines, said, “The defendant (Spicejet) is a defaulter and has no legal and contractual right to continue the use of the engines. The inability of the defendant (Spicejet) 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 the financial distress to the plaintiff (lessors) and therefore, the balance of convenience is against the defendant and in favour of the plaintiff” and added, “In view of the aforesaid findings, this court has no option but to direct the defendant (Spicejet) to ground the three engines with effect from 16.08.2024.”
