On February 22, the Delhi High Court directed SpiceJet, a low-cost airline, to settle $2 million of its outstanding dues to two engine lessors by February 29, warning of potential orders for grounding the engines if payment isn’t made.
Earlier, on January 29, the court had instructed SpiceJet to pay $4 million by February 15, but the airline only managed to pay $2 million within the deadline. Representing SpiceJet, senior advocate Sandeep Sethi cited financial constraints for the partial payment and requested an extension until February 29.
Meanwhile, senior advocate Rajshekar Rao, representing the lessors named Team France 01 SAS and Sunbird France 02 SAS, highlighted that while SpiceJet is failing to settle admitted dues to lessors, its chairman and managing director Ajay Singh has submitted a bid for grounded airline Go First. The court requested documentation to support these claims.
The case is scheduled for another hearing in the second week of March. If SpiceJet fails to meet the February 29 deadline, the lessors have the option to approach the court again. Previously, in December 2023, the Delhi High Court had instructed SpiceJet to pay $450,000 to the lessors within two weeks. Although the airline complied, the lessors pursued further payments considering the outstanding amount.
The lessors, represented by Rao and lawyer Anandh Venkatramani, were briefed by Tuli & Co’s partner Saket Satapathy.
In a separate development, SpiceJet announced on February 22 that it had raised an additional Rs 316 crore, bringing its total fundraising to Rs 1,060 crore through a preferential share issue. This capital infusion comes amidst the airline’s recent decision to reduce its workforce by 10-15 percent. In January, SpiceJet had received Rs 744 crore as the first tranche of funds through the issuance of securities on a preferential basis.
