SpiceJet’s Petition Is Rejected, Leased Engines Grounded by Supreme Court

Nitin Konde, Apoorva Bajj

Sep 20, 2024 — 2 min read

SpiceJet’s Petition Is Rejected, Leased Engines Grounded by Supreme Court

The appeal that SpiceJet filed against an order issued by the Delhi High Court, which forced the cash-strapped airline to ground three engines that were leased from Team France 01 SAS and Sunbird France 02 SAS due to unpaid dues, was denied by the Supreme Court on 20 September 2024.

SpiceJet violated a consent order with the lessors, as determined by a three-judge bench headed by Chief Justice DY Chandrachud, which upheld the high court's orders. The court stated that it was unwilling to interfere and that it believed the judgment handed down by the high court to be correct.

Supreme Court Remained Firm on Its Rejection

In response to a motion from SpiceJet's senior lawyer Amit Sibal for further time to comply with the grounding order, the Supreme Court declined to grant the request. Sibal stated that the airline had previously paid the lessors more than eight million dollars, and that negotiations for a resolution were taking place in Singapore about the matter. He asked for respite until an agreement could be made, but the court declined to have any involvement in the matter.

In addition, Sibal stated to the court that although two of the three engines had previously been grounded, SpiceJet required specialised stands in order to properly ground the engines before releasing them to the lessors. He also asked for additional time. As a reaction, the Supreme Court strongly suggested that SpiceJet contact the Delhi High Court in order to provide an explanation for its situation.

While SpiceJet was still operating the engines, senior attorney Abhishek Manu Singhvi, who was representing the lessors, argued that the company had repeatedly breached the consent order. This was despite the fact that SpiceJet had made 18 court appearances and was facing two orders from the high court. In accordance with the consent order, Singhvi pointed out that SpiceJet was obligated to return the engines within a period of fifteen days in the event that it failed to make payments.

What Next?

Since the airline has used all of its legal options to prevent this from happening, it is now required to ground the engines. In light of the most recent judgment, the financially struggling airline is under even more pressure. The airline SpiceJet stated in court that it maintains a fleet of 21 aircraft and that if the engines were grounded, it would result in the grounding of two flights, which would impair the airline's operations.

SpiceJet, on the other hand, has issued a statement stating that it is now in negotiations with the aircraft lessor in order to negotiate a mutually agreeable settlement. Additionally, it is essential to take notice that two of the three engines in question have already been grounded, and that its activities continue to go in a manner that is fully normal and unaffected.