The lessor verified receiving the engine, but requested compensation from SpiceJet for the cost of restoring it to the redelivery condition indicated in the leasing agreement.
SpiceJet, a low-cost carrier, informed the Delhi High Court on Monday that it had returned a leased engine to its lessor, Engine Lease Finance BV in Brussels, Belgium, on March 5.
Following fruitless settlement talks between SpiceJet and the lessor, the court ordered the airline to return the engine at its own expense by March 10.
The applicant confirmed receipt of the engine, but sought reimbursement from SpiceJet for the cost of the cost of restoring it to the condition of re-delivery as required by the acquisition agreement in the 19th century
Engine Lease informed the court that it would check the condition of the engine with the manufacturer before deciding on damages. The debtor also informed the court that SpiceJet still owed them under the terms of the contract.
However, SpiceJet urged the court to accept the suit as the company complied with the court order by returning the engine.
In an earlier hearing, the court directed the airline’s MD chairman Ajay Singh to file an affidavit within a week stating that the engine would be delivered by the specified date.
The court also ordered both parties to complete engine surveys by February 26. In the first proceedings, the court ordered the appointment of another company before the engines are returned, indicating they will be eaten Aviation Engines General Agreement.
The plaintiff in the case requested the High Court to hold SpiceJet responsible for the cost of recovering and restoring the engine. The lessee said the engine was now unfit for use and could not be re-exported to Europe, accusing SpiceJet of failing to repair it. The airline denied the claims, saying that regular wear and tear was responsible for the engine’s current condition.
Engine Lease Finance went to court in December after unsettled settlement talks with SpiceJet, claiming partial payments and non-compliance with the terms of its contract. SpiceJet agreed in October to pay more than $2 million by January 25 and return the leased engine on that date.
SpiceJet, which is embroiled in legal fights over unpaid dues in several courts, was recently ordered by the Supreme Court to pay $1.25 million to Credit Suisse by March 15, and its chairman, Ajay Singh, was invited to appear before the court a week later.
