SpiceJet has resolved its legal dispute with engine lessor Engine Lease Finance BV in the Delhi High Court through a settlement agreement. As part of the settlement, SpiceJet will pay over $2 million and return the leased engines by January.
The settlement agreement stipulates that SpiceJet must fulfill its financial obligations by January and return the engines by January 25. Engine Lease Finance is not obligated to reverse the terminated lease with the airline as part of the settlement. If SpiceJet fails to adhere to the terms of the agreement, Engine Lease Finance retains the right to take legal action.
The company released a statement in which it confirmed the amicable resolution of the dispute with Engine Lease Finance Corporation Aviation Services Ltd outside of the courtroom.
The court had initially set a deadline until October 16 for SpiceJet and indicated it might prevent the airline from using the leased engines if no settlement was reached.
In court, Engine Lease Finance had argued that SpiceJet should be prohibited from using the engines, as it had provided ample time for the airline to address its payment issues before terminating the lease. SpiceJet, on the other hand, had requested additional time to make the payment, emphasizing that the engines were still in use.
The company is currently facing multiple legal challenges in various courts, including a pending settlement with aircraft lessor Celestial Aviation Services in the National Company Law Tribunal (NCLT). Three other lessors—Willis Lease Finance Corp, Wilmington, and Aircastle—have also filed cases against SpiceJet in the NCLT over unpaid dues.
The airline is also embroiled in an arbitral award execution case with former owner Kalanithi Maran over dues of ₹397 crore, with SpiceJet having recently paid ₹100 crore of the total sum.
In the Supreme Court, the company is contending with a legal challenge from Credit Suisse over a payment default. The court has permitted the airline to make monthly payments of $1 million to the Swiss bank over the next six months to settle its outstanding dues.
