The Delhi High Court has summoned the CEO and COO of SpiceJet to appear in person on January 16, 2025, following allegations of defaulting on $6.03 million owed to two French lessors, Team France 01 SAS and Sunbird France 02 SAS. This payment was mandated under a consent decree from May 29, 2024.
Justice Manmeet Pritam Singh Arora, presiding over the matter, dismissed the airline’s request for virtual attendance, emphasizing the necessity of physical presence for accountability.
The Turbulent Timeline
The dispute traces back to engine lease agreements that soured after SpiceJet failed to honor its financial obligations. Earlier this year, the Court intervened, requiring the airline to pay $4 million to prevent the grounding of leased engines. By May, the outstanding amount ballooned to $10.84 million, prompting the Court to establish a structured repayment plan.
Under the agreement, SpiceJet committed to monthly installments of $1.2 million and weekly rental fees, with a clear warning that failure to comply would result in the grounding of three engines. When the airline defaulted, the engines were ordered to be returned within 15 days, and the repayment liability remained intact.
Legal Woes Continue
This case is just one of many challenges facing the embattled airline. SpiceJet is currently grappling with at least ten insolvency petitions filed before the National Company Law Tribunal (NCLT), signaling deeper financial turbulence.
The legal teams representing both sides have been actively involved in navigating this high-stakes showdown, which now includes scrutiny from the Supreme Court after affirmations by a Division Bench of the High Court.
As the January hearing looms, all eyes are on SpiceJet to see if it can stabilize its precarious position or face further consequences in the battle for financial solvency.
