India
Delhi HC upholds order to ground three SpiceJet engines over default in payments | India News – Times of India
NEW DELHI: The Delhi High Court on Wednesday upheld an earlier order that ordered SpiceJet Airlines to ground three of its aircraft engines due to defaults on payments to French engine lessors. The court dismissed SpiceJet’s appeal against the order, which required the airline to return the engines to the lessors, Team France 01 SAS and Sunbird France 02 SAS.
A divisional bench consisting of judges Rajiv Shakdher and Amit Bansal found no reason to quash the August 14 verdict of Justice Manmeet Pritam Singh AroraThe court had initially ordered SpiceJet to ground the engines and return them within a certain period of time, after the lessors claimed the airline had failed to make millions of dollars in payments.
Justice Manmeet Pritam Singh Arora said, “The defendant is a defaulter and has no legal and contractual right to continue using the Engines. The inability of the defendant to pay the admitted outstanding debts is clearly on record and allowing the defendant to continue using the Engines without payment would only cause financial hardship to the plaintiff and therefore, the balance of convenience is against the defendant and in favour of the plaintiff.”
SpiceJet was initially directed to ground the engines by August 16 and return them to the lessors within 15 days. The court also directed SpiceJet to allow the lessors to inspect the engines at Delhi Airport within seven days and provide necessary passes for the inspection by the lessors’ authorised representatives.
SpiceJet’s appeal against this order was dismissed by the department, which upheld the original order.
A divisional bench consisting of judges Rajiv Shakdher and Amit Bansal found no reason to quash the August 14 verdict of Justice Manmeet Pritam Singh AroraThe court had initially ordered SpiceJet to ground the engines and return them within a certain period of time, after the lessors claimed the airline had failed to make millions of dollars in payments.
Justice Manmeet Pritam Singh Arora said, “The defendant is a defaulter and has no legal and contractual right to continue using the Engines. The inability of the defendant to pay the admitted outstanding debts is clearly on record and allowing the defendant to continue using the Engines without payment would only cause financial hardship to the plaintiff and therefore, the balance of convenience is against the defendant and in favour of the plaintiff.”
SpiceJet was initially directed to ground the engines by August 16 and return them to the lessors within 15 days. The court also directed SpiceJet to allow the lessors to inspect the engines at Delhi Airport within seven days and provide necessary passes for the inspection by the lessors’ authorised representatives.
SpiceJet’s appeal against this order was dismissed by the department, which upheld the original order.
