Delhi HC summons SpiceJet COO, CEO over non-payment of dues to lessors

The Delhi High Court has directed the chief operating officer and chief executive officer of SpiceJet to appear before it in a plea seeking compliance of over USD 6.03 lakh in payment to the aircraft engines lessors.

Justice Manmeet PS Arora "specifically denied" the request of the counsel for judgement debtor, SpiceJet, for the appearance of the two senior officers before the court through video conferencing.

"The chief operating officer (COO) and chief executive officer (CEO) of the judgement debtor are directed to remain present in court on the next date of hearing, that is, January 16, 2025," the court said in its order on December 10.

 

The court was hearing an application by the decree holder and aircraft engine lessor Team France 01 SAS and another, seeking a direction for the compliance of the consent order passed on May 29 wherein the airline was directed to make the payment of USD 6,03,870.82 to the decree holders.

In the recent hearing, Spicejet's counsel urged the court to grant an adjournment due to the unavailability of the senior lawyer.

The court would hear the case on January 16, 2025.

In the May 29 order, the court made an interim arrangement directing Spicejet to pay the outstanding USD 4.8 million and additional weekly payments arising on account of the use of the engines.

The air carrier, however, defaulted in making the payments following which the court directed it to ground three aircraft engines and hand them over to their lessors.

SpiceJet challenged the single-judge's order before the division bench of the high court which upheld the decision. The Supreme Court subsequently upheld the high court's order.

The single-judge passed the order to ground the engines on pleas by the lessors seeking a direction to SpiceJet to hand over the possession of the three engines on termination of the lease agreements.

It was stated in the pleas that following the termination, the plaintiffs directed the airline to ground and re-deliver the engines and pay all outstanding dues, but the carrier failed to do so.