Delhi HC begins contempt case against SpiceJet for not returning TWC’s assets

  • However, the Delhi high court clarified that if SpiceJet returns two airframes and three engines to lessor TWC Aviation Capital within nine days, contempt proceedings will be withdrawn.

Krishna Yadav
First Published9 Jul 2024, 06:09 PM IST
TWC Aviation leased two Boeing aircraft and three engines to SpiceJet in 2019 for a 12-month period.
TWC Aviation leased two Boeing aircraft and three engines to SpiceJet in 2019 for a 12-month period.(Bloomberg)

The Delhi high court on Tuesday ordered the registration of a contempt case against SpiceJet's directors for non-compliance with its order to return two airframes and three engines to lessor TWC Aviation Capital Ltd.

The division bench led by Justice Rajiv Shakhder issued a show cause notice to the airline's directors, asking why contempt proceedings should not be initiated against them for not complying with the court's 2 July order.

In the 2 July order, the bench directed SpiceJet to return all leased assets, including the airframes, engines and all technical records, to TWC Aviation by 8 July. Before that on 27 May, the bench rejected the airline's plea challenging a single-judge bench order to return the assets.

Also Read: 'No more extensions, SpiceJet must pay Credit Suisse'

SpiceJet's lawyer senior advocate Amit Sibal informed the court that the airline had returned two airframes and two engines, while one engine was en route to Chennai. The court noted this as partial compliance and emphasized that full compliance is necessary.

However, the court clarified that if SpiceJet fully complies with the order within nine days, contempt proceedings will be withdrawn.

The court is likely to hear the case next on 19 July.

TWC Aviation claims rental dues of around $16 million from the airline.

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

The lessor leased two Boeing aircraft and three engines to SpiceJet in 2019 for a 12-month period, but the airline defaulted on its $180,000 monthly rent. Disputes arose during the covid-19 pandemic, leading to legal proceedings in courts in India and England.

In March, the High Court of Justice in London issued an interim injunction against SpiceJet, barring the use of TWC's engines on other aircraft over concerns about misuse and potential damage.

Despite SpiceJet's challenge, the court ruled in favour of TWC, ordering the return of the leased assets.

Also Read: In charts: The many challenging lives SpiceJet has lived

On 15 May, the Delhi high court's single-judge bench also ordered SpiceJet to return the aircraft and engines to TWC Aviation by 28 May.

SpiceJet has been embroiled in multiple legal battles over unpaid dues, facing contempt notices from the Delhi high court and the National Company Law Tribunal. The airline previously faced similar actions for non-payment of debts to creditors like Credit Suisse and for failing to honour the arbitral award owed to Sun Group chairman Kalanithi Maran and Kal Airways.

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First Published:9 Jul 2024, 06:09 PM IST
HomeCompaniesNewsDelhi HC begins contempt case against SpiceJet for not returning TWC’s assets

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