Delhi HC summons SpiceJet CEO, COO after failure to pay lessors

New Delhi (The Uttam Hindu):  In fresh trouble for beleaguered low-cost airline SpiceJet, the Delhi High Court has directed the chief operating officer (COO) and chief executive officer (CEO) of the carrier to appear before it, in a plea seeking compliance of over $6 million in payment to the aircraft engines lessors. The bench "specifically denied" the request of the counsel for judgment debtor, SpiceJet, for the appearance of the two senior officers before the court through video conferencing.

"The chief operating officer (COO) and chief executive officer (CEO) of the judgement 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 on December 10. Engine lessors, Team France 01 SAS and Sunbird France 02 SAS had initiated legal action against SpiceJet demanding the return of aircraft engines due to non-payment of contractual obligations following the termination of their agreements. As per reports, Team France is claiming a total of $24.7 million in unpaid dues on account of three engines that were leased to the airline. As per the HC orders, the three engines have been released by the airline and returned to the lessor. Team France is now seeking recovery of unpaid dues.

"It is made clear that the request of the counsel for judgement debtor (SpiceJet) for the appearance of the aforesaid officers through video conferencing has been specifically denied," the court's order said. Ajay Singh, SpiceJet's Chairman and Managing Director, was earlier summoned by the Delhi High Court last year over non-payment of dues by SpiceJet to Kalanithi Maran, stating that SpiceJet owes him Rs 440 crore. In January this year, a Court order compelled SpiceJet to pay an immediate $4 million to avoid the engines from being grounded.