Delhi HC orders SpiceJet to return leased engine to Brussels by March 10

Delhi HC orders SpiceJet to return leased engine to Brussels by March 10

The Delhi High Court on Thursday asked the low-cost carrier SpiceJet to return the engine leased to Engine Lease Finance BV, in Brussels, Belgium, at its own expense by March 10 after settlement talks between the parties failed.

The court told the Chairman and Managing Director of SpiceJet, Ajay Singh, to file an affidavit within a week guaranteeing the engine's delivery by the specified date. The court also told Singh to adhere to the deadline without seeking any more extensions.

SpiceJet told the court it was ready to return the engine but it has yet to obtain customs clearance for the delivery.

Both parties have agreed on the inspection of the engine's condition by February 26.

The Delhi High Court had in January allowed the inspection of the engine leased to SpiceJet.

The lessor had earlier told the court that SpiceJet was "cannibalising" parts for use after grounding the engine. SpiceJet contested this claim.

SpiceJet and Engine Lease Finance BV had told the court in October last year that they had reached an interim settlement.

SpiceJet is supposed to pay more than $2 million to the engine lessor by January, according to the settlement terms.

The lessor said it will not terminate the settlement and will approach the court again if the airline does not comply with its undertaking.

The court had given SpiceJet time until October 16 last year to settle with Engine Lease Finance BV, warning that if the parties failed it would pass an order restraining the use of leased engines.

The airline returned eight of the nine engines and continued to use one. The lessor sought directions to restrain SpiceJet from using the remaining engine.

SpiceJet is dealing with multiple court cases regarding money owed to former owner Kalanithi Maran, aircraft lessors, and engine lessors.