Pay Rs 50 cr to engine lessors or face grounding: Delhi High Court's 'one last opportunity' to SpiceJet

The Delhi High Court on Wednesday gave “one last opportunity” to ailing SpiceJet to pay Rs 50 crore to its engine lessors, Team France and Sunbird France, failing which its two engines would be grounded.

Justice Pratibha Singh asked the Spicejet counsel to get instruction by Friday on the reasonable time period within which the low-cost airline can pay Rs 50 crore to its lessors and whether the already grounded engine can be returned to the lessors.

As of now, the total dues payable are $10.84 million. So far, Spicejet has paid over $5 million since filing of the suit in December.

In a stern warning to SpiceJet for failing to pay its dues, the judge said that if the payment is not made, it will be left with no option but to ground its two engines.

The HC said that considering its past conduct, there has been default in payment of the user charges by the airline. It noted the Spicejet counsel’s submissions that the carrier has full intention to make the payment and if any adverse orders were passed, the grounding of engines will not help anyone and would cause further injury to the airline as it will cut its revenues.

Team France 01 SAS and Sunbird France 02 SAS had moved the HC in December, alleging the airline has not paid them their past dues for over two years and wanted it to restrain Spicejet from using their three engines after termination of the lease and also compensate them.

The engine lessors had asked the HC court to direct SpiceJet to hand over the engines to them.