Justice Pratibha Singh has instructed SpiceJet's representative to ascertain by May 3 a suitable timeline for the airline to settle Rs 50 crore owed to its lessors and to assess the feasibility of returning an inactive engine back to the lessors. The airline currently faces a total outstanding amount of $10.84 million, with partial payments of over $5 million made since legal proceedings commenced in December.
Concerns about SpiceJet's persistent overdue payments have led the judge to warn the airline that failure to address the outstanding amount could lead to the grounding of two engines. The High Court noted previous instances of the airline failing to pay user charges, emphasizing the need for SpiceJet to resolve its financial obligations promptly.
Legal action against SpiceJet was initiated last year by Team France 01 SAS and Sunbird France 02 SAS, alleging non-payment of dues for over two years. The lessors sought court intervention to prevent SpiceJet from utilizing three engines post-lease termination and requested compensation for the unsettled amounts. Additionally, the lessors urged the High Court to mandate the return of the engines.
Further exacerbating SpiceJet's financial troubles, three lessors filed a petition with the National Company Law Tribunal, seeking insolvency proceedings against the airline for alleged default on rental payments totaling Rs 77 crore. This legal action was backed by a ruling from the High Court of Justice in London and contractual agreements between the concerned parties, as highlighted by Pramod Nair, the senior advocate representing the lessors.