Delhi HC issues contempt notice to Spicejet for non-return of assets to TWC Aviation

Troubled fund hose SpiceJet has erstwhile again attracted the ire of the Delhi precocious tribunal for failing to settee dues with its lessors. On Tuesday, the tribunal issued a contempt announcement to the airline's absorption aft it disregarded a anterior bid mandating the instrumentality of 2 airframes and 3 engines to lessor TWC Aviation Capital Ltd. The airline's unpaid dues are reported to full $14 million.

The part seat of the precocious tribunal has acceptable a last deadline of July 8 for SpiceJet to return each leased assets, including the airframes, engines, and each method records, to TWC Aviation. Failure to comply whitethorn effect successful the tribunal directing the grounding of the engines.

"If determination is nary compliance with the direction, we volition walk consequential directions for grounding the craft carrying the taxable engines," remarked the part bench.

However, the tribunal clarified that contempt proceedings could beryllium dropped if SpiceJet complies with the directive by the specified deadline.

“By June 17, 2024, we were capable to instrumentality the 2 craft frames and indicated to the responsive that we are prepared to instrumentality them. However, determination has been immoderate hold successful securing replacement engines. We person taken steps to get them and person entered into assorted agreements and made important payments to galore craft lessors,” said elder lawyer Amit Sibal, representing SpiceJet.

TWC Aviation, however, refused to judge the airframes without the engines and accused SpiceJet of repeatedly seeking extensions portion continuing to nett from the engines without compensating the lessor. 

"I conscionable can't alert planes without engines," remarked elder counsel Dayan Krishnan connected behalf of the lessor, urging the tribunal to crushed the affected craft immediately.

Sibal emphasized the interaction connected passengers, saying, "This is simply a nationalist hose with thousands of passengers flying daily. We are consenting to supply a written undertaking that careless of uncovering replacements, we volition instrumentality the engines by July 8 adjacent if it means grounding aircraft."

TWC Aviation besides demanded that the engines beryllium returned to airports successful Delhi and Chennai, wherever the airframes are presently located. SpiceJet's elder counsel requested clip to person instructions from the absorption regarding the transportation location.

The tribunal volition perceive the lawsuit adjacent connected 9 July.

The azygous seat had connected 15 May ordered SpiceJet to instrumentality 2 leased Boeing craft and their engines to TWC Aviation by 28 May owed to unpaid dues. The tribunal emphasized the request to forestall further harm to the lessor's assets based connected an inspection study provided by TWC Aviation.

TWC Aviation had leased 2 Boeing craft and 3 engines to SpiceJet successful 2019 for a 12-month period, but the hose defaulted connected its $180,000 monthly rent. Disputes arose during the pandemic, starring to ineligible actions successful courts successful India and England.

In March, the High Court of England and Wales issued an interim injunction against SpiceJet, barring the usage of TWC's engines connected different craft owed to concerns astir misuse and imaginable damage. Despite SpiceJet's challenge, the tribunal ruled successful favour of TWC, ordering the instrumentality of the leased assets.

SpiceJet has been embroiled successful aggregate ineligible battles implicit unpaid dues, facing contempt notices from some the Delhi precocious tribunal and the National Company Law Tribunal. The hose has antecedently faced akin actions for non-payment of debts to creditors similar Credit Suisse and for failing to honour the arbitral grant owed to Sun Group president Kalanithi Maran and Kal Airways.