Delhi HC grants SpiceJet three weeks more to return leased assets to TWC Aviation
single bench order to return the assets, noting that the airline owes a significant amount of dues to lessors and was prima facie found to have used the assets inappropriately, especially by utilizing the lessor's engines in other aircraft, which violates regulations. "They (the lessor) are not in the business of charity," the court said.The division bench allowed SpiceJet an extension on the condition that it would withdraw its challenge to the single bench order and proceed to argue in front of the single bench on challenging the maintainability of the lessor's suit.SpiceJet pleaded that these leased engines were in use in operational flights with advanced bookings from passengers.
It argued that the airline needed some time to replace these leased engines so it would not impact its flight operations.Amit Sibal, representing SpiceJet, said the aircraft's engines are crucial for the functioning of the airline, constituting approximately 7.5% of its total fleet of 27 aircraft. He highlighted SpiceJet's track record of settling with around 15 lessors and creditors, including Credit Suisse and Celestial Aviation.Sibal also proposed to pay $50,000 per week to TWC Aviation as part of the settlement to clear the complete dues of $14 million.On 15 May, a single bench high court ordered SpiceJet to return two leased Boeing aircraft and their engines to lessor TWC Aviation by 28 May over unpaid dues.
The court noted that SpiceJet had damaged TWC’s assets by separating the engines from the planes and using them in other aircraft. Referring to an inspection report provided by TWC Aviation, the court underlined the need to prevent further damage to the assets.TWC Aviation Capital leased two Boeing aircraft and three engines to
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