The Delhi High Court took a stringent stance against SpiceJet Ltd. on Tuesday, demanding accountability from the airline for its payment commitments to Engine Lease Finance BV.
The court, dissatisfied with an affidavit submitted by the airline's general manager (legal), insisted that the undertaking should be presented through an individual who could be held responsible in case of non-compliance with the payment schedule.
The case, triggered by Engine Lease Finance BV's allegations that SpiceJet failed to meet payment commitments, is scheduled for the next hearing on Dec. 21.
On Dec. 15, the Delhi High Court had directed the airline to submit an affidavit outlining its payment undertaking, after the engine lessor claimed that the financially troubled airline had not been fulfilling its obligations.
Engine Lease Finance BV contends that SpiceJet has only made partial payments and is yet to fulfill payment obligations outlined in the October agreement.
Justice Sachin Datta, presiding over a single-judge bench, orally emphasised that the low-cost carrier cannot ignore its commitments and instructed SpiceJet to file the necessary affidavit.
The legal dispute originated when Engine Lease approached the court, seeking an order for SpiceJet to cease using a leased engine and return it. The lessor had leased nine engines to SpiceJet and is now pursuing possession of the remaining engine that have not been returned.
The court, providing SpiceJet an opportunity to present its case, is closely monitoring the situation.
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