Delhi High Court Orders SpiceJet To Handover Leased Aircrafts With Engines To TWC Aviation

The Delhi High Court has recently ordered SpiceJet to handover two Boeing Aircrafts with engines to TWC Aviation over unpaid dues.

Justice Prathiba M Singh 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.

“Under such circumstances, this Court has no option but to direct that the aircrafts along with the engines along, with all relevant records relating to technical condition and usage of aircrafts shall be handed over to the Plaintiff by 28th May, 2024,” the court said.

The court was dealing with a suit filed by TWC Aviation, owner of the aircrafts and engines, 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 suit alleged that despite the orders, SpiceJet failed to comply with the directions, removed the Engines and used them in other Aircrafts without permission.

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

“Further, it is the admitted position that the aircrafts and engines are owned by the Plaintiff and the Defendant have failed to make payments as also breached the lease agreement. Also, the balance of convenience lies in the favour of the Plaintiff considering that the Plaintiff already has a strong case for enforcement of the judgement of the U.K Court,” the court said.

It added: “This Court is of the opinion that, as it is, sufficient damage has been caused by separating the engines from aircrafts. The engines are being separately used. The inspection of the aircraft frames had been given to the Plaintiff, which as per ld. Sr. counsel, shows that there is substantial deterioration in the aircraft frames and engines.”

The matter will now be heard on May 31.

Counsel for Plaintiff: Mr. Ashish Dholakia, Sr. Adv. with Mr. Ravi Nath, Mr. Ankur Mahindro, Mr. Rohan Taneja, Mr. Aditya Kapur, Ms. Vishali, Mr. Ankesh Tripathi, Ms. Yashika Arora, Mr. Abhijeet Mittal, Mr. Siddhant Vyas, Mr. Ankush Satija, Mr. Mohit Dagar, Mr. Rohit Bishnoi and Ms. Shubhangi Jain, Advs

Counsel for Defendant: Mr. Sandeep Sethi, Sr Advocate with Mr. K. R Sasiprabhu, Mr. Kartikeya Asthana & Ms. Shreya Sethi, Advs

Title: TWC AVIATION CAPITAL LIMITED v. SPICEJET LIMITED

Citation: 2024 LiveLaw (Del) 605

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