By February 29th, Delhi High Court orders SpiceJet to pay $2 million to lessors

The HC requested that SpiceJet pay $4 million on February 15 on January 29. Nevertheless, the airline sought an extension until February 29 and paid just $2 million by the deadline, alleging financial difficulties.

The airline has received a warning from the HC that if it doesn't pay the required amount, it will have to pass instructions in the application to ground the engines.

On February 22, the Delhi High Court ordered budget carrier SpiceJet to reimburse two engine lessees for $2 million by February 29.

The airline has received a warning from the HC that if it doesn't pay the required amount, it will have to pass instructions in the application to ground the engines.

SpiceJet barely paid $2 million by the deadline, despite the HC's request on January 29 for the airline to pay $4 million by February 15. Speaking on behalf of the airline, senior attorney Sandeep Sethi informed the judge that they are unable to pay the whole sum owing to financial difficulties and requested an extension until February 29.

Senior attorney Rajasekhar Rao informed the court that even though the airline was not paying its lessors the authorized amounts owed, its Chairman and Managing Director Ajay Singh had lodged a complaint in his own capacity. Rao was speaking on behalf of the lessors Team France 01 SAS and Sunbird France 02 SAS. The airline's finalized Go First offer. The court requested documentation from the lessors attesting to this after hearing these arguments.

The second week of March will now mark the case's hearing. If SpiceJet fails to pay lessors by February 29th, they may reapply to the court.

The Delhi High Court ordered SpiceJet to provide lessors $450,000 within two weeks in December 2023. Even though the airline had made the payment, the lessors insisted on receiving more funds because of the unpaid balance.

The leasing businesses, Team France 01 SAS and Sunbird France 02 SAS, filed a complaint claiming that they had been unpaid by the airline for over two years in the amount of $12.9 million. In addition, even though the lease had expired, he urged the court to prevent the airline from utilizing its three engines.

The Tuli & Co. partner Saket Satpathy briefed Rao and the lessees' attorney, Anand Venkataramani.

SpiceJet collected money:

By virtue of the preferential share issuance, SpiceJet has raised a total of Rs 1,060 crore in investment as of February 22, having secured an extra Rs 316 crore.

The airline, which has been having financial difficulties, has announced that it would be reducing its workers by 10-15%. SpiceJet was the recipient of the first tranche of cash, which totaled Rs 744 crore, via the preferential issuance of stocks in January.