Delhi High Court Denies Urgent Listing For SpiceJet’s Appeal On Engine Grounding Order

On Friday, the Delhi High Court declined SpiceJet’s request for an expedited hearing of its appeal against a recent order to ground three aircraft engines and return them to their lessors.

Acting Chief Justice Manmohan and Justice Manmeet P S Arora received the plea. The court stated that it could not accommodate the request for an urgent listing due to a shortage of available judges.

The bench stated, “It is very difficult to list it today. Several judges are on leave today. Let the learned judges read the papers (case documents). We will have it on Tuesday.”

The airline’s appeal challenges an 14 August order from a single judge, which mandated that SpiceJet ground the three engines by 16 August and return them to Team France 01 SAS and Sunbird France 02 SAS within 15 days.

The judge also directed the airline to facilitate an inspection of the engines by the lessors at Delhi airport within 7 days.

Delhi HC Rejects SpiceJet’s Appeal; Sibal Warns Of Flight Disruptions

Senior advocate Amit Sibal, representing SpiceJet, argued that immediate court intervention was crucial.

He further warned that grounding the engines would result in the suspension of two aircraft and disrupt passenger travel, potentially leading to flight cancellations and inconveniences. Sibal highlighted that SpiceJet currently operates 21 aircraft.

The bench, however, noted the impracticality of reviewing the case documents on the same day and suggested, “Let the airline manage with 19 aircraft until Tuesday when we will address the matter.”

The single judge’s order followed pleas from the lessors demanding the return of the engines after lease agreements ended.

The lessors had alleged that SpiceJet failed to comply with the return directive and settle outstanding dues.

The court had emphasized that the airline’s financial obligations remained, including a $4.8 million payment for previous use and weekly charges.

The judge also noted that the continued use of the engines by SpiceJet, despite outstanding payments, was causing irreparable harm to the lessors, who are facing financial distress due to the depreciation and wear of the engines.

The airline was described as a defaulter with no legal right to retain the engines under the circumstances.

In response, SpiceJet’s counsel acknowledged an admitted default of $2.67 million as of 12 August, despite a payment of $7.18 million between December 2023 and May 2024.

The airline requested an extension until September 30 to clear the outstanding amount and regularize its payments.

The Delhi High Court has directed that the case be thoroughly reviewed on 20 August, when the airline’s appeal will be formally heard.

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