More Stories

Informist, Monday, Dec. 16, 2024

 

NEW DELHI – The Delhi High Court has directed the presence of SpiceJet Ltd.'s chief operating officer and chief executive officer on the next date of hearing on Jan. 16, for non-payment of $6 million to the company's lessors Team France 01 SAS and Sunbird France 02 SAS. 

 

In December last year, the lessors had filed two suits, seeking a decree of permanent injunction restraining SpiceJet and its directors and employees from using its three engines any further for non-payment of dues. The lessors had also sought directions from the court to SpiceJet to hand over these engines to them and compensate them for the cost associated with their repossession, as well as pay them the outstanding lease charges.

 

Thereafter, in May, the high court passed a consent order asking SpiceJet to pay $4.8 million to the engine lessors as an interim arrangement to continue using their three leased engines. SpiceJet would pay the amount in four instalments, 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 missed any of the payments, it would be liable to ground its three engines and return these within 15 calendar days, the court had said. After this payment, the parties would discuss the plan for the remaining payment related to the outstanding $3.6 million, it had said.

 

This interim arrangement would remain in place, and subject to its compliance, the airline would continue to use the engines, the court said.

 

However, SpiceJet had defaulted on payments, due to which the high court had asked it to ground its engines in August, and this was even upheld by the Supreme Court. In the current proceedings, the counsel for the airline said the company has filed its objections to the execution petition by the lessors. 

 

The positions of SpiceJet's chief operating officer and chief executive officer are currently vacant.  End

 

US$1 = INR 84.86

 

Reported by Surya Tripathi

Edited by Avishek Dutta

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2024. All rights reserved.