The Delhi High Court directed low-cost airline SpiceJet to file a response to a petition seeking the enforcement of an order requiring the grounding of three aircraft engines and their return to the lessors. The court also instructed the airline to submit an affidavit detailing its assets and scheduled the next hearing for November 13.
Justice Manmeet Pritam Singh Arora issued a notice to the Directorate General of Civil Aviation (DGCA), ordering a representative to appear in court on November 13 with a status report confirming compliance with the court’s August 14 order. This report must outline the current status of the engine re-delivery.
In its August 14 ruling, the court mandated SpiceJet to ground the three engines by August 16 and return them to their lessors within 15 days.
On Monday, SpiceJet’s counsel stated the airline was prepared to return the engines but needed to procure a technical device called an engine stand, which would take approximately 30 days. Senior advocate Amit Sibal, representing SpiceJet, indicated that if the lessors could obtain the stands sooner, they were welcome to do so.
This statement was contested by senior advocate Rajshekhar Rao, representing the lessors, who pointed out that the airline had been aware of the need to return the engines since the August 14 order and criticized their failure to arrange for the engine stands in a timely manner. The court granted the lessors the right to procure the stands at the airline’s risk and cost.
The court noted that no stay had been issued against the August 14 order, and the lack of action from SpiceJet regarding the engine stands was unacceptable.
Concerning the requirement for the lessors to inspect the engines, SpiceJet’s counsel assured that the inspection would be offered by October 7, provided the lessors supplied the names of their representatives.
The lessors’ counsel stated that, due to SpiceJet’s failure to comply with the August 14 order, they had sent two emails to DGCA officials, but had received no response.
The August 14 order was issued following pleas from the lessors seeking the return of the engines after lease agreements were terminated. The pleas highlighted that the airline had not complied with directives to ground the engines and pay outstanding dues.
The court clarified that the airline remains liable for payments amounting to USD 4.8 million and for weekly payments related to the engines, despite the return of the engines. The plaintiffs are entitled to recover these amounts through the execution of the order dated May 29, 2024.
