Recently, the Delhi High Court has directed SpiceJet to transfer two Boeing aircraft, along with their engines, to TWC Aviation due to outstanding dues.
Justice Prathiba M Singh noted that the separate use of the aircraft frames and engines by SpiceJet would significantly depreciate their value for TWC Aviation, and the airline had not settled its dues.
“In these circumstances, the Court has no choice but to order that the aircraft, along with the engines and all relevant technical records, be handed over to the Plaintiff by May 28, 2024,” the court stated.
The court was addressing a lawsuit filed by TWC Aviation, the owner of the aircraft and engines, seeking a permanent injunction against SpiceJet.
According to the suit, the aircraft and engines were leased to SpiceJet for 12 months at a monthly rent of USD 180,000. SpiceJet allegedly failed to pay the lease rentals, and despite several amendment agreements due to payment difficulties during the COVID-19 pandemic, the airline breached them as well.
TWC Aviation sought enforcement of UK Court orders directing SpiceJet to immediately return possession of the aircraft.
The lawsuit claimed that despite the orders, SpiceJet did not comply, removing the engines and using them in other aircraft without authorization.
In ruling for TWC Aviation, the court stated that when there are acknowledged dues, SpiceJet cannot retain possession of the aircraft and engines without making payments.
“It is also acknowledged that the aircraft and engines belong to the Plaintiff, and the Defendant has failed to make payments and breached the lease agreement. The balance of convenience favors the Plaintiff, as they already have a strong case for enforcing the UK Court’s judgment,” the court remarked.
The court further noted the significant damage caused by separating the engines from the aircraft and the substantial deterioration in their condition, based on the inspection provided to the Plaintiff.
The case is scheduled for further hearing on May 31.
