SC to hear on Tuesday SpiceJet’s plea against grounding of engines
Insight Online News
New Delhi, Sep 16 : The Supreme Court is slated to hear on Tuesday a plea filed by low-cost carrier SpiceJet against the Delhi High Court directive requiring the debt-ridden airline to ground three engines over repetitive failures to pay its lessors.
As per the causelist published on the website of the apex court, a bench headed by CJI DY Chandrachud comprising Justices JB Pardiwala and Manoj Misra will take up the matter for hearing on September 17.
Last week, SpiceJet mentioned its special leave petition before Chief Justice of India (CJI) D. Y. Chandrachud for an urgent hearing challenging the Delhi High Court’s refusal to interfere with a directive requiring the low-cost carrier to ground three engines.
A division bench of the Delhi High Court upheld a single-judge bench’s order asking Spicejet to ground three engines by February 16, apart from taking steps to ensure that the engines are re-delivered to lessors within 15 days.
SpiceJet had moved an appeal before the division bench of the High Court and prayed for an urgent hearing against the decision of the single-judge bench of Justice Manmeet Singh Arora.
In his judgment, Justice Arora had observed: “The defendant (SpiceJet) is a defaulter and has no legal and contractual right to continue the use of the engines. The inability of the defendant to pay the admitted outstanding dues is writ large on the face of the record and in fact permitting the defendant to continue the use of the engines without payment would only cause financial distress to the plaintiff (lessors).”
SpiceJet was permitted to continue the use of the engines after it undertook before the Delhi High Court on May 29 that it would repay the outstanding lease amounts along with the weekly payments.
The Delhi High Court had clarified that the return of the engines does not absolve the airline from its liability of payments which have admittedly fallen due.
