Order Implementation
SpiceJet's lessors move HC to enforce foreign court judgment
This story was originally published at 18:18 IST on 9 October 2024
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NEW DELHI – SpiceJet's lessors AWAS 36694 Ireland Ltd., AWAS 36695 Ireland Ltd., and AWAS 36698 Ireland Ltd. have moved the Delhi High Court to enforce a judgement passed by the High Court of England and Wales on Nov. 3, 2023. The English court had awarded the lessors a sum of $9.29 million and litigation costs of INR 4.5 million, to be paid by the airline. The Delhi High Court, which had already issued a notice to the airline earlier, will hear the case next on Nov. 28.
The lessors, companies incorporated in Ireland, had entered into three aircraft lease agreements with SpiceJet for the lease of three Boeing Model B737-800 aircraft on May 19, 2019. Under the agreements, SpiceJet was to pay basic rent of $220,000 per month, along with supplemental rent, to the lessors. However, after the onset of the COVID-19 pandemic, SpiceJet began defaulting on its payments under the three agreements.
To assist SpiceJet, the lessors entered into forbearance agreements, wherein they would temporarily refrain from taking steps against the airline for defaults, provided the airline was able to complete payment. However, since the airline began defaulting on monthly default payments, the lessors issued a notice of default to SpiceJet and a notice of termination for the three aircraft agreements.
Thereafter, the lessors initiated proceedings before the High Court of England and Wales. As per a summary judgement by the court, the airline was to pay the lessors by Nov. 17, 2023. However, the airline had failed to make any payment till date, the lessors said.
The lessors had also moved the National Company Law Tribunal on Apr 18 in an insolvency petition against the airline. They have claimed dues of INR 770 million from the airline arising out of the summary judgement from the High Court of England and Wales.
Today, shares of SpiceJet ended 4.7% higher at 65.76 rupees on BSE. End
US$1 = INR 83.96
Reported by Surya Tripathi
Edited by Avishek Dutta
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