Delhi HC upholds order directing SpiceJet to return aircraft to TWC Aviation

New Delhi : The Delhi High Court on Monday declined to intervene in a single judge bench's order directing airline SpiceJet to return two Boeing aircraft with engines to TWC Aviation over unpaid dues.

A division bench of Justices Rajiv Shakdher and Amit Bansal has directed SpiceJet to comply with the order by June 17.

Previously, the single judge had mandated that SpiceJet hand over the aircraft, engines, and all relevant technical records to TWC Aviation by May 28.

This decision came after senior advocate Amit Sibal, representing SpiceJet, agreed to the bench's suggestion to extend the compliance deadline if SpiceJet withdrew its appeal.

SpiceJet accepted the proposal and withdrew the appeal.

TWC Aviation, the owner of the aircraft and engines, initiated a lawsuit seeking a permanent injunction against SpiceJet. The suit alleged that the aircraft were leased to SpiceJet for 12 months at a monthly rent of $180,000. SpiceJet, however, failed to pay the lease rentals, prompting the creation of amendment agreements to accommodate payment difficulties due to the Covid-19 pandemic.

Despite these adjustments, SpiceJet breached the agreements.

TWC Aviation sought enforcement of a UK court's order directing SpiceJet to return the aircraft immediately.

The single-judge bench observed that the separate use of aircraft frames and engines by SpiceJet would significantly reduce their value for TWC Aviation and noted the airline's failure to pay the dues. Ruling in favour of TWC Aviation, it stressed that SpiceJet could not continue to use the aircraft and engines without fulfilling its payment obligations given the acknowledged dues.