NEW DELHI: In a latest development, the Delhi High Court has postponed an urgent hearing on SpiceJet's appeal concerning a court order to ground three of its aircraft engines. The airline's plea, which was presented before the court on Friday, requested an immediate review to contest the directive to cease operations of the engines by today and return them to the lessors within 15 days.

Acting Chief Justice Manmohan and Justice Manmeet P S Arora, the bench handling the case, acknowledged the urgency but indicated that immediate action was impractical due to the unavailability of several judges. The court scheduled the hearing for August 20, citing the need for judges to review the case documents thoroughly.

SpiceJet's appeal challenged an order issued by a single judge on August 14, which mandated the grounding of the engines by August 16 and their return to the lessors—Team France 01 SAS and Sunbird France 02 SAS—within the stipulated timeframe. The ruling also required SpiceJet to facilitate an inspection of the engines by the lessors at Delhi airport within seven days.

Senior advocate Amit Sibal, representing SpiceJet, emphasized the urgency of the matter, arguing that grounding the engines would force the airline to suspend two aircraft, leading to flight cancellations and significant inconvenience for passengers. Sibal pointed out that the airline currently operates 21 aircraft.

Despite the urgency conveyed, the bench maintained that it was not feasible to address the plea immediately and advised the airline to manage with its remaining 19 aircraft until the next hearing.

The single judge's order also addressed the financial aspects of the dispute, noting that SpiceJet remains liable for outstanding payments amounting to USD 4.8 million, as well as ongoing weekly payments related to the engines' use. The court clarified that the return of the engines would not absolve SpiceJet from these financial obligations.

The lessors had previously requested the court to enforce the lease agreement terms, highlighting SpiceJet's failure to ground and return the engines as per the agreement and settle overdue payments. The court's decision underscored the lessors' claim of suffering financial losses due to the continued use of the depreciating assets.

In its response, SpiceJet's legal team revealed that the airline had made partial payments totaling USD 7.18 million from December 14, 2023, to May 24, 2024, including a recent settlement of USD 1.48 million. However, the airline admitted a default of USD 2.67 million as of August 12 and requested an extension until September 30 to settle the outstanding amount.

The court's directive aims to ensure that SpiceJet complies with the lease agreements and returns the engines as required, balancing the interests of both parties involved in the dispute.

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