The Delhi High Court on Wednesday upheld a previous order directing SpiceJet to ground 3 of its engines due to unpaid dues to French engine lessors.
The airline appealed the decision, challenging the order to return the engines to Team France 01 SAS and Sunbird France 02 SAS.
The Division Bench, consisting of Justices Rajiv Shakdher and Amit Bansal, found no reason to overturn the initial ruling, confirming that SpiceJet must comply with the grounding order. This order, issued by Justice Manmeet Pritam Singh Arora on August 14, 2024, required SpiceJet to ground the engines and return them within the specified deadline.
The court noted that the lessors were suffering irreparable loss because the engines are depreciating assets that experience wear and tear. The bench emphasized that SpiceJet, having defaulted on payments, had no legal right to continue using the engines. Allowing SpiceJet to retain the engines without settling the dues would only worsen the lessors’ financial distress, according to the court.
The court’s August 14 order also required SpiceJet to ground the engines by August 16 and return them within 15 days. Additionally, SpiceJet must allow the lessors to inspect the engines at Delhi Airport within 7 days and provide passes to their representatives for the inspection.
