The Delhi High Court’s division bench on Wednesday upheld a prior directive mandating that low-cost carrier SpiceJet ground three of its engines due to the airline’s failure to meet payment obligations to lessors.
The ruling comes after a single-judge bench led by Justice Manmeet Singh Arora had previously ordered SpiceJet to ground the engines by 16 February.
The court instructed the airline to return the engines to the lessors within 15 days.
SpiceJet, grappling with financial challenges, sought to overturn this directive through an appeal to the division bench, requesting an expedited review of the decision.
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In his earlier judgment, Justice Arora had remarked, “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 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 financial distress to the plaintiff (lessors).”
Previously, SpiceJet had been granted permission to retain the engines following a commitment made to the Delhi High Court on 29 May.
At that time, the airline pledged to settle overdue lease payments and maintain weekly payments.
Despite this commitment, the airline’s current order to return the engines does not negate its existing payment liabilities, which remain overdue.
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