Delhi High Court Orders SpiceJet to Ground Three Engines Amid Lease Dispute

The Delhi High Court has directed SpiceJet to ground three engines by August 16, 2024, and hand them over to their lessors within 15 days. The court's decision comes after SpiceJet failed to return the engines and clear outstanding dues, leading to substantial financial distress for the lessors.

The Delhi High Court on Wednesday issued a direction to low-cost airline SpiceJet to ground three engines by August 16, 2024, and return them to their lessors within 15 days.

The directive followed pleas from lessors Team France 01 SAS and Sunbird France 02 SAS, who sought to reclaim the engines after the termination of lease agreements and non-payment of dues. Justice Manmeet Pritam Singh Arora, presiding over the matter, highlighted the airline's admitted liability and ongoing default, stressing that SpiceJet's continued use of the engines would exacerbate financial losses to the lessors.

The court's decision mandates prior inspection of the engines at the Delhi airport and emphasizes SpiceJet's responsibility to continue payments, per earlier commitments amounting to USD 4.8 million, irrespective of the engine handover. This order underlines the court's stance on ensuring compliance with leasing terms and protecting lessor rights amid default situations.

(With inputs from agencies.)