Delhi HC allows lessor to inspect engine leased to SpiceJet

The Delhi high court on Tuesday granted Engine Lease Finance BV, a lessor to SpiceJet, permission to inspect an engine leased to the airline. The court stipulated that the inspection should occur once during the engine's grounding and again at re delivery. SpiceJet has been directed to to maintain the status quo post grounding, using the engine solely for refurbishment purposes.

The next hearing in the case is set for the last week of January. Engine Lease Finance sought legal recourse following unsuccessful settlement talks with SpiceJet, alleging partial payments and incomplete fulfilment of their October payment agreement. In the interim settlement of October, SpiceJet had agreed to pay over $2 million to the lessor by 25 January and also return the leased engines by this date.

The agreement permitted Engine Lease Finance to terminate the lease or seek court intervention if SpiceJet defaulted. The lessor accused SpiceJet of "cannibalizing" the engine and using it despite a grounding agreement. SpiceJet refuted this by presenting Flightradar24 data, tracking aircraft movement.

SpiceJet assured the court of its commitment to ground the engine and address the lessor's allegations in detail. The cash strapped airline faces multiple legal challenges over unpaid dues. On 10 January, the Delhi high court summoned SpiceJet's chairman, Ajay Singh, in a dispute with Sun Group's Kalanithi Maran over arbitration dues.

Alterna Aircraft BV Ltd, an Ireland based lessor, recently filed an insolvency plea against SpiceJet at the National Company Law Tribunal, demanding the recovery of $11.1 million and £265,000, as ordered by English courts. On 19 December, the Delhi high court ordered SpiceJet to pay $450,000 by 3 January to engine lessors EAM France 01 SAS and Sunbird France 02 SAS, who claimed unpaid dues of $12.9 million for over two years.

The court also contemplated barring the airline from using three engines following lease termination. Livemint tops charts as the fastest growing news website in the world to know more. Unlock a world of Benefits! From insightful newsletters to real time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away!.