Supreme Court Rejects SpiceJet’s Appeal in Engine Dispute
The Supreme Court of India has upheld a decision by the Delhi High Court, rejecting SpiceJet’s attempt to overturn orders requiring the airline to return three aircraft engines to their leasing companies, Team France 01 SAS and Sunbird France 02 SAS. On September 20, a three-judge bench, including the chief justice, dismissed SpiceJet’s petitions, refusing to interfere with the earlier rulings, reported ch-aviation.com.
The dispute stems from lease defaults that have persisted for several years, with the lessors pursuing legal action to reclaim the engines. In a previous case, a single judge in the Delhi High Court ordered SpiceJet to return the engines, a decision that was unsuccessfully challenged by the airline before a three-judge panel. The airline’s final appeal to the Supreme Court has now also been dismissed.
SpiceJet’s legal troubles extend beyond this case, as the airline is involved in multiple disputes with airframe and engine lessors. The National Company Law Tribunal (NCLT), India’s specialist bankruptcy court, is currently overseeing several of these cases. According to a recent filing, 36 of SpiceJet’s 58 aircraft are grounded due to lease disputes or maintenance issues.
In its official statement, SpiceJet acknowledged the ongoing disputes with lessors, noting that defaults on lease payments have triggered legal proceedings. The airline admitted that lessors have the right to terminate lease agreements and reclaim aircraft, which has led to a significant portion of its fleet being out of service.
SpiceJet is currently defending multiple insolvency proceedings in the NCLT while working toward settlements with lessors and vendors. The airline is also trying to raise INR30 billion (USD359.4 million) to address its financial liabilities, with INR7.5 billion (USD89.5 million) earmarked for settling debts owed to lessors, vendors, and financiers.
Despite the Supreme Court’s ruling, SpiceJet continues to navigate complex financial and legal challenges, as it strives to stabilize its operations and resolve ongoing disputes.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com