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Informist, Thursday, Jan. 16, 2025

 

--Delhi HC asks SpiceJet to pay lessors $2.67 mln in one week 

--HC asks SpiceJet to deposit $335,999 with court's registrar in 3 weeks 

--CONTEXT: HC on plea by lessors against SpiceJet over non-payment of dues 

 

NEW DELHI – Pulling up SpiceJet Ltd. for taking the court for a ride by not paying its dues to lessors amounting to $6 million, the Delhi High Court Thursday ordered the airline to pay up $2.67 million to Team France 01 SAS and Sunbird France 02 SAS in one week. Observing that it wants to see "the colour of money", the court also asked the airline to deposit $335,999 with the registrar in three weeks.

 

"We absolutely despise the manner in which the court is being taken for a ride," said Justice Anish Dayal. "This order is for execution, it has been confirmed by the Supreme Court. There was an amount. Give us a date (for payment of money)."

 

Last month, the court had directed the presence of SpiceJet's chief operating officer and chief executive officer for non-payment of money. On Thursday, the airline's Managing Director Ajay Singh was present with Deputy Chief Financial Officer Joyakesh Podder as the company currently does not have a chief operating officer or a chief executive officer.

 

"Show us the colour of money," said Justice Dayal, asking SpiceJet's counsel to stop wasting the court's time. "There are payments to be made. We will have to take steps against them (the airline). The court's majesty cannot be diluted. The sense I get is, we (SpiceJet) push a little bit more, let's see how the court reacts. It is actually history, the most peculiar history, it (SpiceJet) is extremely badly mismanaged." 

 

In December 2023, the lessors had filed two suits seeking a decree of permanent injunction restraining SpiceJet and its directors and employees from using their three engines any further for non-payment of dues. The lessors had also sought directions from the court to SpiceJet to hand over the engines to them and compensate them for the cost associated with their repossession, besides paying 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 the three leased engines. SpiceJet would pay the amount in four instalments, the court had said.

 

In addition, the airline was to make weekly payments of $160,000 to the lessors from Jun. 8 to Sep. 30. If it missed any of the payments, it would be liable to ground the three engines and return them within 15 calendar days, the court had said. After these payments were made, the parties were to discuss the plan for the remaining payment related to the outstanding $3.6 million, it had further said. The interim arrangement would remain in place, and subject to compliance, the airline could continue to use the engines, the court had added.

 

However, SpiceJet defaulted on payments, following which the high court had ordered it to ground the engines in August. This order was upheld by the Supreme Court. In the current proceedings, the lessors have sought execution of the consent order passed by the high court in May.

 

On Thursday, shares of SpiceJet Ltd. ended 0.4% higher at INR 50.02 on BSE.  End

 

US$1 = INR 86.55

 

Reported by Surya Tripathi

Edited by Rajeev Pai

 

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