Delhi High Court orders SpiceJet to pay $1.58 million to engine lessors by May 22

The Delhi High Court on Friday asked SpiceJet to pay $1.58 million to its engine lessors Team France and Sunbird France by May 22, even as it noted that negotiations between the low-cost airline and the lessors are on and the terms of the settlement are yet to finalised.

Justice Pratibha Singh also noted the Spicejet’s submissions clarification that it was using all the three engines and one of them was grounded briefly for maintenance work.

On Wednesday, the HC gave “one last opportunity” to the ailing carrier to pay Rs 50 crore to its engine lessors while warning that if the payment is not made, the court will be left with no option but to ground its two engines.

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.

SpiceJet’s senor counsel Sandeep Sethi while reiterating that the carrier has full intention to make the payment submitted a chart giving a timeline for the payment.

Team France and Sunbird France had moved the court in December, alleging the airline had not paid them their past dues for over two years and wanted the court to restrain SpiceJet from using their three engines after termination of the lease, besides compensating them.

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