Delhi HC asks SpiceJet's CFO to appear before it if airline fails to make balance payment to its engine lessors
Court on Wednesday directed SpiceJet Ltd's chief financial officer to appear before it on August 8, if the airline failed to make the balance payment of Rs 20 crore to its engine lessors--Team France 01 SAS and Sunbird France 02 SAS.
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However, SpiceJet's assured the court that it is in the process of raising funds and was hopeful to pay the amount till the next date of hearing on August 8.
The lessors said that SpiceJet failed to comply with the earlier assurance given to the HC and sought to restrain the airline from operating the engines. SpiceJet, however, accepted the default and said the payment will be made till August 8.
On May 29, the HC had directed the low-cost airline to pay $4.8 million in four instalments to the engine lessors as an interim arrangement for the carrier to continue to use three leased engines from the lessors.
The carrier must also make weekly payments of $160,000 to the lessors from June 8 to September 30, Justice Pratibha Singh had ordered earlier.
In case of any default, the carrier will be liable to ground and return the three engines within 15 days, the HC stated, while asking parties to further discuss the plan for payment of the balance outstanding of $3.6 million.
Team France and Sunbird France had moved the court in December, alleging that the airline had not paid them their past dues for over two years. They
