HC pulls up SpiceJet for removing parts from planes returned to lessor
This story was originally published at 20:07 IST on 17 December 2024
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NEW DELHI – The Delhi High Court on Tuesday pulled up SpiceJet for removing parts from aircraft that were returned to lessor TWC Aviation Capital Ltd. Expressing shock at the airline's conduct, the court said it was considering prima facie to hold SpiceJet in contempt of its order to return the aircraft.
Initially, the court was mulling summoning the airline's top leadership. However, it deferred any such action and listed the case for hearing on Jan. 14.
TWC Aviation said SpiceJet had returned the aircraft and engines, but several parts were removed from the airframes. SpiceJet is profiting illegally by using the parts in other planes operated by it,, the lessor said. The returned engines and airframes have become useless after SpiceJet removed the parts, it said.
SpiceJet argued that as per the lease agreement with TWC Aviation, the lessor was free to sue it separately for damages. To this, the court said no clause in the agreement appears to allow the removal of parts. Moreover, it said, its order was clear, that the entire aircraft had to be returned.
In 2019, TWC Aviation leased the aircraft and engines to SpiceJet for 12 months at a basic rent of $180,000 per month. TWC Aviation said SpiceJet did not pay the lease rentals. Thereafter, various amendment agreements were signed to accommodate payment difficulties caused by the COVID-19 pandemic. However, these agreements were also breached by SpiceJet, the lessor said.
Thereafter, TWC Aviation moved the High Court of Justice in England and Wales and instituted a suit against SpiceJet. The British court had in March directed SpiceJet "delivery-up" of both the aircraft and the three engines and payment of the remaining dues. SpiceJet failed to comply with the order and was found to have removed the engines and used them in other aircraft without permission, leading to further legal notices from the lessor. Consequently, TWC Aviation filed a suit in the Delhi High Court seeking a declaration that the orders by the British court are valid and binding.
On May 15, the high court directed SpiceJet to hand over to TWC Aviation two Boeing aircraft and three aircraft engines by May 31 for failing to pay dues amounting to $14 million. On Jul. 9, the court ordered registration of a contempt case against the airline for not complying fully with its order.
On Tuesday, shares of SpiceJet Ltd ended 1.3% lower at INR 57.70 on the BSE. End
Reported by Surya Tripathi
Edited by Rajeev Pai
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