Delhi High Court upholds order directing SpiceJet to return 2 aircraft, 3 engines

The Delhi High Court on Monday refused to interfere with the order of the single-judge directing SpiceJet to comply with a United Kingdom (UK) court order and return two leased aircraft and three engines to TWC Aviation Capital (TWC/ lessor)..A Division Bench of Justices Rajiv Shakdher and Amit Bansal made it clear that it will not grant any interim relief to SpiceJet as the low-cost carrier owes nearly ₹120 crore to the lessor.“As far as we are concerned, we are not giving any interim order. We have heard you, no interim order... ₹120 crore outstanding amount... you have cannibalised the aircraft, taken away the engines, that is the prima facie view,” the Court said.Senior Advocate Amit Sibal appeared for SpiceJet and said that the company is struggling financially and if it meets the same fate as Go Air, there will be virtual duopoly in the airline industry. The Court said that if SpiceJet withdraws the appeal, the Court would give the airline some time to comply with the single-judge’s order.SpiceJet agreed to the suggestion and withdrew the plea.The Bench then said that the aircraft, engines and technical records shall be returned by June 17..Single-judge Justice Prathiba M Singh passed an order on May 15 and directed SpiceJet to return the aircraft and engines by May 28.TWC had filed a case before the single-judge to enforce two orders passed in March by a court in the United Kingdom (UK), which directed SpiceJet to return the leased aircraft and engines to TWC.It was alleged that three engines from the leased aircraft were removed and being used in other aircraft. TWC claimed ownership over two Boeing 737-800 aircraft along with three aircraft engines which were leased to SpiceJet.According to TWC, a lease agreement dated May 27, 2019 was entered into with SpiceJet to lease these aircraft for 12 months at a basic rent of $180,000 per month.TWC alleged that SpiceJet failed to make lease rental payments and that three engines from the leased aircraft were removed and used in other planes.