Delhi High Court to Hear SpiceJet’s Appeal Against Aircraft Engine Grounding Order

The Delhi High Court has scheduled a hearing to review SpiceJet’s appeal challenging a recent judicial order requiring the airline to ground and return three aircraft engines to their lessors, Team France 01 SAS and Sunbird France 02 SAS. This development comes after SpiceJet’s legal team sought an urgent hearing, although the court has yet to address the matter on an expedited basis.

The initial order, issued on August 14, 2024, by Justice, directed SpiceJet to ground the specified engines by August 16 and ensure their return to the lessors within a defined timeframe. The court’s decision was based on the argument presented by the lessors, who claimed significant financial losses due to the continued use of their engines by SpiceJet. The engines in question, viewed as depreciating assets prone to wear and tear, were being used without payment, which the court deemed unacceptable.

Justice’s order highlighted that SpiceJet, described as a defaulter, had no contractual or legal right to retain the engines given its outstanding dues. The court’s stance was that allowing SpiceJet to persist in using the engines without fulfilling financial obligations would exacerbate the plaintiffs’ financial distress, thereby disrupting the balance of convenience in favour of the lessors. The lessors’ claim included a demand for several million dollars in overdue payments. As part of the court’s ruling, SpiceJet has been instructed to facilitate an inspection of the engines by the lessors’ representatives at Delhi Airport within seven days. The airline is also required to provide access passes for this inspection.

This case underscores the mounting financial pressures on SpiceJet and highlights the ongoing disputes between airlines and lessors within the aviation sector. The forthcoming Delhi High Court decision is poised to impact not only the immediate parties involved but also the broader industry dynamics, making it a crucial development for stakeholders across the aviation field.