HC seeks SpiceJet CFO presence if airline doesn't pay engine lessors
This story was originally published at 16:02 IST on 31 July 2024
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NEW DELHI – The Delhi High Court today directed SpiceJet Ltd's chief financial officer to appear in court on the next date of hearing on Aug 8 and reply if the airline does not make the remaining payment to its engine lessors--Team France 01 SAS and Sunbird France 02 SAS. The court noted SpiceJet's assurance that it was raising funds and was hopeful to pay the amount till the next date of hearing.
On May 29, the high court had asked SpiceJet to pay $4.8 mln to the engine lessors as an interim arrangement to continue using their three leased engines. Spicejet will pay the amount in four instalments to the lessors, the court had said.
In addition, the airline would make weekly payments of $160,000 to the lessors from Jun 8 to Sep 30. If the airline misses any of the payments, it will be liable to ground its three engines and return these within 15 calendar days, the court had said. After this payment, the parties will discuss the remaining plan of payment related to the outstanding $3.6 mln, said the court. The above interim arrangement will remain in place and, subject to its compliance, the airline will continue to use the engines, said the court.
In December, the lessors had filed two suits seeking a decree of permanent injunction restraining SpiceJet and its directors and employees from utilising the said engines any further. The lessors had also sought directions to SpiceJet to hand over these engines to them and compensate them for the costs associated with their re-possession and also pay them the outstanding lease charges.
Today, the lessor said that SpiceJet failed to comply with the statements given to the court. It sought an injunction against the airline from operating the engines. SpiceJet accepted the default and said that the payment will be made till Aug 8. At 1422 IST, the shares of SpiceJet Ltd were down 2.7% at 56.30 rupees on the BSE.
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Surya Tripathi
Edited by Aditya Sakorkar
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