SC dismisses SpiceJet's plea against Delhi HC order grounding 3 aircraft engines

Apex Court on SpiceJet: The Supreme Court on Friday upheld an order of the Delhi High Court which directed low-cost airline SpiceJet to ground three aircraft engines for defaulting on payments to lessors.

A bench comprising Chief Justice D Y Chandrachud and Justices J B Pardiwala and Manoj Misra dismissed the appeal filed by SpiceJet against the high court verdict of September 11. "We will not interfere. It's a correct order," the bench said.

A division bench of the Delhi High Court had held that the carrier had violated an agreed interim arrangement for payment of dues and upheld an order of a single-judge bench asking the low-cost airline to ground the three engines for defaulting on the payments.

The single-judge bench of the high court had on August 14 directed SpiceJet to ground three engines by August 16 and hand them over to their lessors -- Team France 01 SAS and Sunbird France 02 SAS.

A high court bench of Justices Rajiv Shakdher and Amit Bansal refused to interfere with an August 14 order of the single-judge bench to ground the three aircraft engines and hand them over to the lessors, and disposed of SpiceJet's appeals against it.

SpiceJet had challenged the August 14 order of the single-judge bench.

The high court said the record revealed that SpiceJet was in default, and past and current outstanding dues remain unpaid. The single judge had passed the order on pleas moved by the lessors seeking a direction to SpiceJet to hand over the possession of the three engines on the termination of the lease agreements.