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Business News/ Companies / News/  Delhi High Court orders SpiceJet to return two leased planes to TWC Aviation over unpaid dues
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Delhi High Court orders SpiceJet to return two leased planes to TWC Aviation over unpaid dues

The court noted that SpiceJet, which owes TWC $14 million, had damaged its assets by separating the engines from the two planes and using them in other aircraft.

TWC previously rejected SpiceJet's offer to pay $435,000 a month to clear its dues. Photo: ReutersPremium
TWC previously rejected SpiceJet's offer to pay $435,000 a month to clear its dues. Photo: Reuters

New Delhi: The Delhi High Court has ordered SpiceJet to return two leased Boeing aircraft and their engines to lessor TWC Aviation Capital Ltd by 31 May over unpaid dues. The court also told the struggling airline on Wednesday to hand over all records related to the use of the aircraft frames and engines.

The court noted that SpiceJet had damaged TWC’s assets by separating the engines from the planes and using them in other aircraft. Referring to an inspection report provided by TWC Aviation, the court underlined the need to prevent further damage to the assets.

Also read: How to turn Indian airports into South Asian travel hubs

SpiceJet currently owes $14 million to TWC, which rejected the airline’s offer to pay $435,000 a month to clear its dues. TWC asked the high court to enforce a previous order by the High Court of Justice in England and Wales that directed SpiceJet to return the aircraft and engines for failing to pay its rental dues.

TWC had leased two Boeing aircraft and three engines to SpiceJet for 12 months in 2019, but SpiceJet defaulted on its $180,000 monthly rent. Agreements between the two companies were amended during covid, but SpiceJet allegedly violated the terms. TWC Aviation Capital then filed a lawsuit in the High Court of Justice in England and Wales, seeking to reclaim its assets.

Also read: For SpiceJet to stay afloat, some crew will have to deplane

In March, the High Court of England and Wales issued an interim injunction against SpiceJet, prohibiting it from using TWC's engines on other aircraft, citing concerns about inappropriate use and potential damage.

SpiceJet challenged the injunction and said it would prevent further damage, but the court ruled in TWC’s favour, ordering the airline to return the leased aircraft and engines.

SpiceJet is facing several lawsuits from lessors over unpaid dues in the Delhi High Court and the National Company Law Tribunal. On 3 May the high court ordered the airline to pay $1.58 million to its engine lessors Team France and Sunbird France by 22 May, saying the aircraft with the leased engines would be grounded if the dues were not paid.

Also read: India's aviation-hub dreams get new wings as IndiGo takes long-haul route

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ABOUT THE AUTHOR
Krishna Yadav
Krishna, a lawyer turned journalist, is a key member of Mint's corporate team. He covers major legal battles in Delhi's courtrooms, with a focus on finance, markets, and policy. Additionally, he crafts easy-to-understand explainers for complex stories and holds a PG Diploma from the renowned Asian College of Journalism.
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Published: 15 May 2024, 06:51 PM IST
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