Engine Lease Finance BV has moved the Delhi High Court seeking the return of an engine it leased to troubled airline SpiceJet. The firm had leased a total of nine engines to SpiceJet.
The engine leaser has also asked the court to direct SpiceJet to not use the engine, according to Moneycontrol.
Senior attorneys Rajshekar Rao and Anandh Venkatramani testified before the high court on behalf of Engine contract that the company had terminated its contract with SpiceJet and that the airline had returned eight out of its nine engines.
Once the lease was expired, the airline was not permitted to use the engine in accordance with the agreement.
While expressing satisfaction with the lessors' arguments, Justice Sachin Dutta stated that he wanted to hear from SpiceJet before issuing an injunction.
The case is likely to come up for hearing on October 6 and the judge has issued a notice to SpiceJet.
Tuli & Co, with Partner, Saket Satapathy represented Engine Lease Finance Corporation.
It is noteworthy that Engine Lease Finance is also a lessor to the bankrupt airline Go First. The company is fighting a legal battle with Go First as well. Engine Lease wants to be exempted from the insolvency process, as it terminated the leases before the order for moratorium was passed. The case is in the National Company Law Tribunal (NCLT).
Due to SpiceJet's failure to pay its debts, four aircraft lessors have filed five insolvency claims against the airline in 2023.
To allow them to collect their debts from SpiceJet, Aircastle Ireland Ltd, Willis Lease Corporation, Wilmington, and Celestial filed proceedings with the NCLT.
The NCLT has urged the airline to reach a settlement with the lessors even though it has just given notice in Aircastle's first plea. As the ailing airline seeks to resume full operations, SpiceJet allotted more than 4.8 crore shares to nine aircraft lessors in August to pay off outstanding debts totaling 231 crore rupees (almost $28 million).
NCLT is likely to hear these pleas in October 2023.