Delhi High Court Declines To Interfere With Single Judge Order Asking SpiceJet To Handover Leased Aircrafts With Engines To TWC Aviation

The Delhi High Court on Monday refused to interfere with a single judge's order directing airline SpiceJet to handover two Boeing Aircrafts with engines to TWC Aviation over unpaid dues.

A division bench comprising of Justice Rajiv Shakdher and Justice Amit Bansal however directed SpiceJet to return the aircrafts and engines to the lessor by June 17.

The single judge had directed that the aircrafts along with the engines along, with all relevant records relating to technical condition shall be handed over to the lessor by May 28.

This was after Senior Advocate Amit Sibal appearing for SpiceJet agreed to the bench's suggestion that the airline will be given further time comply with the impugned order if the appeal is withdrawn.

Accordingly, SpiceJet agreed to the suggestion and withdrew the appeal.

Proceedings before Single Judge

TWC Aviation, owner of the aircrafts and engines, had filed a suit before the single judge seeking permanent injunction against SpiceJet.

The suit alleged that the aircrafts with the engines were leased out to SpiceJet for 12 months with a basic rent of USD 180,000 per month. 

It further alleged that SpiceJet did not make the payment of the lease rentals and various amendment agreements were entered into to accommodate payment difficulties due to the COVID-19 pandemic. However, the amendment agreements were also breached by the airline.

TWC Aviation sought enforcement of orders passed by the UK Court directing SpiceJet to deliver possession of the aircrafts forthwith.

The single judge had observed that the aircrafts frames and aircraft engines being used separately by SpiceJet would cause considerable reduction in their value for TWC Aviation and that the dues were not forthcoming from the airline.

Ruling in favour of TWC Aviation, the single judge had observed that when there were admitted dues, SpiceJet cannot continue to enjoy the aircrafts and the engines without making payments.

Title: SpiceJet v. TWC Aviation

Citation: 2024 LiveLaw (Del) 641