SpiceJet Withdraws Appeal, Agrees to Return Leased Aircraft and Engines by June 17
SpiceJet has withdrawn its plea against an order requiring it to return two leased aircraft and three engines to TWC Aviation Capital Limited. The Delhi High Court has granted the airline until June 17 to comply with the order, allowing some time to address operational concerns.
The issue dates back to a May 15 order from a single-judge bench, which emphasized that SpiceJet’s continued use of the aircraft and engines without adhering to the lease terms would cause significant harm to TWC. The court noted that failing to return and service the engines properly could lead to irreversible damage, impacting TWC’s ability to monetize them.
Court Proceedings and Statements
During the latest hearing, senior advocate Amit Sibal, representing SpiceJet, conveyed the airline’s decision to withdraw its appeal. The division bench of Justice Rajiv Shakdher and Justice Amit Bansal agreed to grant additional time for compliance, provided the appeal was withdrawn.
Sibal explained that the airline needed the extension to replace the engines with alternatives to avoid disrupting flight operations and inconveniencing customers with existing bookings. This request was acknowledged, and the court granted time until June 17 for SpiceJet to hand over the aircraft, engines, and related technical records.
Background of the Dispute
TWC Aviation Capital Limited moved the single-judge bench earlier this year to enforce two UK court orders from March, which directed SpiceJet to return the aircraft and engines. TWC claimed that despite these orders, SpiceJet removed and used the engines in other aircraft without permission, leading to further legal action.
SpiceJet contended that the UK court’s order was not enforceable under Section 13 of the Code of Civil Procedure, which outlines conditions under which a foreign judgment may be deemed inconclusive. However, the single-judge bench found no reason to doubt the validity of the UK court’s judgment, as it was issued by a competent court as per the agreement between the parties.
Compliance and Future Steps
With the appeal withdrawn, SpiceJet is now focused on ensuring compliance with the court’s directive while managing its operational needs. The airline has committed to returning the aircraft and engines by the stipulated deadline, marking a step towards resolving the ongoing legal and logistical issues with TWC Aviation Capital Limited.
As the situation unfolds, the compliance with the court’s order will be crucial for SpiceJet to maintain its operations smoothly and uphold its contractual obligations in the aviation industry.