Delhi High Court Upholds Order for SpiceJet to Ground Three Engines Over Payment Default

The Delhi High Court, in a judgment on Wednesday, upheld an earlier order directing SpiceJet Airlines to ground three of its aircraft engines due to a payment default to French engine lessors. SpiceJet had filed an appeal against the order to ground the engines and return them to the lessors, Team France 01 SAS and Sunbird France 02 SAS.

A Division Bench comprising Justices Rajiv Shakdher and Amit Bansal dismissed the airline’s appeal, finding “no suitable reason” to interfere with the original ruling. The order was initially passed by Justice Manmeet Pritam Singh Arora on August 14, 2024, directing SpiceJet to ground the engines and return them within a specified timeframe.

The court sided with the lessors, agreeing that they were suffering irreparable losses due to the continued use of the engines by SpiceJet, emphasizing that engines are depreciating assets subject to wear and tear. The court observed that SpiceJet, being in default, had no legal or contractual right to continue using the engines without making the necessary payments.

Justice Arora’s ruling noted that allowing SpiceJet to use the engines without settling its outstanding dues would only exacerbate the financial harm to the lessors. The court ordered the engines to be grounded by August 16 and returned within 15 days. SpiceJet was also instructed to facilitate the inspection of the engines by the lessors’ representatives at Delhi Airport within seven days and to provide access passes for this purpose.

The lessors, Team France 01 SAS and Sunbird France 02 SAS, had claimed that SpiceJet owed them several million dollars, leading to the legal action and subsequent court rulings.