Delhi HC asks SpiceJet to pay $4.8 mn to engine lessors in four instalments

After giving "one last opportunity" earlier this month to Indian carrier SpiceJet for paying engine lessors Team France 01 SAS and Sunbird France 02 SAS, the Delhi High Court on Wednesday directed the airline to pay $4.8 million in four instalments.

This would work as an interim arrangement for the airline to continue to use their three leased engines.

SpiceJet would make weekly payments of $160,000 to the lessors from June 8 to Sep 30.

The High Court has also said that in case of any default in paying the due amount in instalments, the carrier will be liable to ground and return its three engines within 15 calendar days.

Further, the parties will discuss the plan for payment of the outstanding balance of $3.6 million.

Team France 01 SAS and Sunbird France 02 SAS had moved the HC in December, alleging the airline has not paid them their past dues for over two years and wanted it to restrain Spicejet from using their three engines after termination of the lease and also compensate them.

The engine lessors had asked the HC court to direct SpiceJet to hand over the engines to them.

As of May 1, the total dues payable are $10.84 million and Spicejet had paid over $5 million since filing of the suit in December, ET had reported.

Justice Pratibha Singh, on May 1, had asked the Spicejet counsel to get instruction by May 3 on the reasonable time period within which the low-cost airline can pay Rs 50 crore to its lessors and whether the already grounded engine can be returned to the lessors.