Delhi High Court has issued summonses for the CEO and COO of SpiceJet (SG, Delhi International) to appear in person to explain why the airline failed to comply with a May 2024 order to pay USD6 million to lessor Team France 01 SAS.
The December 10 order in the matter of Team France 01 SAS and Anr v. Spicejet Limited directs the executives to appear in person on January 16, 2025. The court declined a request by SpiceJet's counsel for the individuals to appear via videolink. However, as Spicejet's September preliminary placement filing for its recent capital raising reveals, the CEO and COO roles at SpiceJet are vacant.
Top shareholder Ajay Singh acts as chairman and managing director. However, it is unclear whether he will appear in lieu given that the order, which ch-aviation has seen, specifically refers to the CEO and COO. Nonetheless, Indian news reports are describing the summonses as an embarrassment to Singh as he continues to use recently raised funds to try to clean up SpiceJet's reputation as a serial defaulter.
Team France 01 SAS and Sunbird France 02 SAS have been pursuing SpiceJet over debts accrued in the leases of three aircraft engines. After SpiceJet ignored earlier court orders concerning payment, the lessors agreed to the airline making monthly repayments, starting on May 22, 2024. However, the carrier again defaulted. In September, the airline was ordered to return the engines. It appealed that and lost.
Missing parts
Meanwhile, lawyers for TWC Aviation Capital were back at Delhi High Court on December 18, reviving the matter of SpiceJet Limited v. TWC Aviation Capital Limited. The lessor had leased two B737-800s and four CFM engines to the airline. In September, the court upheld a UK High Court ruling that SpiceJet cease using the assets and return them to TWC.
Initiating contempt proceedings this week, counsel for TWC confirmed SpiceJet had returned the aircraft and engines. However, they say one aircraft was returned missing 16 parts and another missing 29 parts. Counsel for TWC alleged the carrier had removed the parts to use on other aircraft.
According to a CNBC TV18 report, SpiceJet admitted to doing so and said that, per the lease agreement terms, TWC could sue them, but in separate, fresh proceedings. However, during this week's hearing, justices Rekha Palli and Saurabh Banerjee said there was no such clause in the lease contract, and earlier orders to return the assets did not allow the airline to remove parts before doing so. The judges described SpiceJet's conduct as "shocking" and said they were open to holding the airline in contempt. The matter returns to court on January 14, 2025.
ch-aviation has contacted SpiceJet for comment.
