The Delhi High Court has ordered SpiceJet (SG, Delhi International) to allow Engine Lease Finance BV to inspect an engine after the LCC allegedly kept using it despite an agreement disallowing its use after a certain date.
In October, ch-aviation reported that Engine Lease Finance BV reached an interim settlement with SpiceJet, in which the lessor agreed to drop a stay application in exchange for the airline paying it over USD2 million by the start of 2024 and returning an aircraft engine by January 25.
During a mid-October hearing before the parties arrived at an agreement, the engine lessor told the court that SpiceJet had defaulted on nine engine lease agreements. While SpiceJet had returned eight of the nine engines, one remained at the airline. Per the terms of the interim settlement, Engine Lease Finance retained the right to return to court if SpiceJet breached its terms.
The lessor hauled the LCC back to court on January 16, alleging partial payments and incomplete fulfilment of the agreement. Engine Lease Finance alleged SpiceJet had continued using the engine, although the terms of the October agreement stipulated cessation of use on January 15 ahead of its return on January 25. The lessor also accuses the airline of "cannibalising" parts of the engine.
Counsel for SpiceJet told the court the airline would cease using the engine immediately and the other issues, including allegations of removing/swapping parts, would be addressed in a future "comprehensive response." The court ordered SpiceJet to allow Engine Lease Finance immediate access to their engine for inspection purposes and further access before its handover. The court also ordered the airline to abide by the terms of the October interim settlement.
