Delhi HC orders SpiceJet to return leased engine to Brussels by 10 March
Earlier, the court had instructed both of them to nominate a third-party agency to inspect the engine before its return, ensuring it remains in its current condition as per the aircraft engine general agreement. The lessor had approached the high court to hold SpiceJet responsible for covering the costs of returning the engine and restoring it to a usable state.
The lessor claims the engine is currently unfit for service and cannot be returned to Europe, alleging SpiceJet’s negligence in maintaining it. SpiceJet denied these accusations, citing normal wear and tear as the cause of the engine’s current condition.
Engine Lease Finance had moved to court in December after unsuccessful settlement talks with SpiceJet, alleging partial payments and failure to meet the terms of their agreement. In October, SpiceJet had agreed to pay over $2 million by 25 January and return the leased engine by that date.
Engine Lease Finance had initially approached the court in September, stating that it had terminated its lease with SpiceJet and received back eight of nine engines. The lessor sought a court order to restrain SpiceJet from using the one engine that had not been returned after the termination of the lease.
According to the agreement, SpiceJet cannot use the engine once the lease ends. SpiceJet, grappling with legal battles over unpaid dues in various courts, was on Monday ordered by the Supreme Court to pay $15 million to Credit Suisse by 15 March and its chairman Ajay Singh asked to appear before it a week after making the payment.Milestone Alert!
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