38.6c New Delhi, India, Sunday, September 07, 2025
Top Stories Supreme Court
Political NEWS Legislative Corner Celebstreet International Videos
Subscribe Contact Us
close
Business

Amidst woes of mounting debt claims, SpiceJet accused of 'cannibalizing' grounded flight engine

By Shreya Agarwal      18 January, 2024 05:32 PM      0 Comments

NEW DELHI: Even as sinking airline SpiceJet's creditors mount claims on it for dues surpassing $25 mln, Engine Lease Finance BV, a lessor to SpiceJet, told Delhi High Court that SpiceJet has cannibalized one of its leased engines and is using it despite a grounding agreement.

The Delhi High Court has thus granted Engine Lease Finance permission to inspect an engine leased to the airline.

The Court stipulated that the inspection should occur once during the engine's grounding and again at re-delivery, according to a report in LiveMint.

SpiceJet has also been directed to maintain the status quo post-grounding, using the engine solely for refurbishment purposes.

The next hearing in the matter is scheduled for the last week of January.

Facts

Engine Lease Finance moved Court after unsuccessful settlement talks with SpiceJet. It alleged partial payments and default of even the interim October settlement agreement.

In the interim settlement of October, SpiceJet had reportedly agreed to pay over $2 million to the lessor by January 25 and also return the leased engines by this date.

The agreement permitted Engine Lease Finance to terminate the lease or seek move court in case of default.

SpiceJets mounting dues

Besides $2 mln owed to Engine Lease Finance as part of the interim settlement, SpiceJet owes Alterna Aircraft BV Ltd, an Ireland-based lessor, an amount of $11.1 million and 265,000, as ordered by English courts, and around $12.9 mln to EAM France 01 SAS and Sunbird France 02 SAS.

SpiceJet faces recovery proceedings either in the Delhi High Court or the National Company Law Tribunal (NCLT) for all the mentioned dues.

(This is not an exhaustive list of SpiceJets dues).



Share this article:

About:

A wanderer, aspiring yogini and writer. Shreya is a lawyer by profession, journalist by passion. A g...Read more

Follow:
FacebookTwitterLinkedinInstagram


Leave a feedback about this
Related Posts
View All

'Without documentary proof, Waqf Board can't lay claim over any property' 'Without documentary proof, Waqf Board can't lay claim over any property'

In 2012, the Anjuman Committee addressed a letter to the Chairman of the Waqf Board stating there is a wall and Chabutrah (platform) on a 'Tiranga Ki Qalandari Masjid where in olden times laborers used to offer prayers.

Delhi High Court Sets Aside Arbitral Tribunal's Award Against NHAI in Highway Project Delay Case [Read Judgment] Delhi High Court Sets Aside Arbitral Tribunal's Award Against NHAI in Highway Project Delay Case [Read Judgment]

The Delhi High Court sets aside an Arbitral Tribunal's award favoring IRB Pathankot Amritsar Toll Road Ltd over a delay in a highway project. The court finds that the tribunal did not address the essential dispute of whether the National Highways Authority of India (NHAI) was in material default, rendering the award invalid.

Delhi Court Rejects Stay Request in Defamation Case Against Rajasthan CM Ashok Gehlot [Read Order] Delhi Court Rejects Stay Request in Defamation Case Against Rajasthan CM Ashok Gehlot [Read Order]

A Delhi court refuses to stay the defamation case filed by Union Cabinet minister Gajendra Singh Shekhawat against Rajasthan Chief Minister Ashok Gehlot. The court declined to stay the summons and sets a hearing date for August 19.

Delhi High Court to Commence Daily Hearings on August 28 for Appeals Against Acquittals in 2G Case Delhi High Court to Commence Daily Hearings on August 28 for Appeals Against Acquittals in 2G Case

Delhi High Court is set to begin day-to-day hearings from August 28 for appeals by CBI and ED against acquittals in the 2G spectrum allocation case, expressing displeasure over adjournment requests. The case involves former telecom minister A Raja and business entities. Learn about the proceedings and details of the case.

TRENDING NEWS

wife-living-in-adultery-not-entitled-to-maintenance-rules-delhi-court
Trending Judiciary
Wife Living In Adultery Not Entitled To Maintenance, Rules Delhi Court

Delhi court denies maintenance to woman under Section 125 CrPC, ruling that a wife proven to be living in adultery is disqualified from claiming support.

06 September, 2025 06:32 PM
sc-dissolves-marriage-faced-deadlock-over-1951-model-antique-hand-made-classic-rolls-royce-car
Trending Judiciary
SC dissolves marriage faced deadlock over 1951 model antique hand-made classic Rolls Royce car [Read Order]

SC dissolves marriage invoking Article 142 after dispute over 1951 Rolls Royce; man agrees to pay ₹2.25 cr in mediated settlement.

06 September, 2025 06:44 PM

TOP STORIES

sc-approves-ecs-move-to-accept-claims-or-objections-to-draft-electoral-rolls-beyond-sep-1
Trending Judiciary
SC approves EC's move to accept claims or objections to draft electoral rolls beyond Sep 1

SC allows EC to accept claims and objections to Bihar draft electoral rolls even after Sept 1 deadline, till last date of nominations.

01 September, 2025 02:54 PM
sc-declines-to-entertain-pil-against-20-per-cent-ethanol-blended-petrol-e20-fuel
Trending Judiciary
SC declines to entertain PIL against 20 per cent ethanol-blended petrol, E20 fuel

SC declines PIL against Centre’s E20 fuel rollout, upholding ethanol-blended petrol policy despite concerns on efficiency and vehicle damage.

01 September, 2025 03:01 PM
sc-notice-on-tns-plea-against-hcs-judgment-on-implementation-of-rte-act
Trending Judiciary
SC notice on TN's plea against HC's judgment on implementation of RTE Act

SC issues notice on Tamil Nadu plea against Madras HC order making state solely liable for RTE Act funding, seeks Centre’s response.

01 September, 2025 04:35 PM
sc-upholds-telanganas-4-year-residence-rule-to-avail-domicile-quota-in-medical-admissions
Trending Judiciary
SC upholds Telangana's 4-year residence rule to avail domicile quota in medical admissions [Read Judgment]

SC upholds Telangana’s rule requiring 4 years of study in the state for availing domicile quota in MBBS and BDS admissions.

01 September, 2025 06:02 PM

ADVERTISEMENT


Join Group

Signup for Our Newsletter

Get Exclusive access to members only content by email