SpiceJet shares will remain in focus on Tuesday after the Delhi High Court directed the airline’s CEO and COO to appear in court over non-compliance with a payment of $603,870 to aircraft engine lessors. Justice Manmeet PS Arora denied SpiceJet‘s request for virtual attendance, ordering both executives to appear in person on January 16, 2025.
“The chief operating officer (COO) and chief executive officer (CEO) of the judgment debtor are directed to remain present in court on the next date of hearing, that is, January 16, 2025,” the court said in its order.
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The court was hearing an application from the decree holder and aircraft engine lessor Team France 01 SAS, seeking a direction for compliance with the consent order passed on May 29, which required the airline to pay $603,870.82 to the decree holders.
In the recent hearing, SpiceJet‘s counsel requested an adjournment due to the unavailability of the senior lawyer.
The court will hear the case on January 16, 2025.
In the May 29 order, the court made an interim arrangement directing SpiceJet to pay the outstanding $4.8 million, along with additional weekly payments arising from the use of the engines. However, the airline defaulted on the payments, prompting the court to order it to ground three aircraft engines and return them to their lessors.
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SpiceJet challenged the single-judge’s order before the division bench of the high court, which upheld the decision. The Supreme Court subsequently upheld the high court’s ruling. The single-judge passed the order to ground the engines following pleas from the lessors, who sought a direction for SpiceJet to return possession of the three engines after the termination of the lease agreements.
The pleas stated that following the termination, the plaintiffs instructed the airline to ground and re-deliver the engines and pay all outstanding dues, but the carrier failed to comply.
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