The Delhi High Court recently ordered SpiceJet to comply with a UK court ruling to return two leased aircraft and three engines to TWC Aviation Capital. Justice Prathiba M Singh noted that SpiceJet had caused significant damage by removing the engines and using them in other aircraft, reducing the value of the leased aircraft. The Court highlighted that this separation might not be permissible and emphasized that the dues from SpiceJet were still outstanding.
Here’s the full story:
- In April 2024, the Delhi High Court allowed TWC (Plaintiffs) to take possession of two aircraft as a receiver but prohibited moving them without court orders, while permitting SpiceJet to use the engines.
- The current order directs SpiceJet to unconditionally hand over the two aircraft and three engines to TWC.
- The Court mandated that the aircraft, engines, and all relevant technical and usage records be handed over to TWC by May 28, 2024.
- The order followed SpiceJet’s failure to pay lease rent dues to TWC Aviation.
- TWC Aviation filed the suit to enforce two UK court orders issued in March 2024, which directed SpiceJet to return the leased aircraft and engines.
- It alleged that three engines from the leased aircraft were removed and used in other aircraft by SpiceJet.
- It claimed ownership of two Boeing 737-800 aircraft and three aircraft engines leased to SpiceJet under a May 27, 2019 lease agreement at $180,000 per month.
- TWC asserted that SpiceJet failed to make lease rental payments and breached an amended agreement accommodating payment difficulties due to the COVID-19 pandemic.
- It then initiated legal proceedings in the UK, where a court ruled in their favor in March 2024, ordering SpiceJet to return the leased aircraft and engines.
- After SpiceJet failed to comply with the UK court orders, TWC approached the Delhi High Court, which deemed the suit maintainable, granted interim relief to TWC, and noted the enforceability of the UK court orders under Section 13 and Section 44A of the CPC.
The next hearing is scheduled for May 31.
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