Business News

The Delhi High Court on Tuesday issued contempt notice to Spicejet, its directors and officers as to why contempt proceedings should not be initiated against them for non-compliance of its May 27 order that had asked the low-cost airline to hand over two Boeing aircraft and three aircraft engines to its lessor TWC Aviation Capital.However, the division Bench of the HC on Tuesday said that contempt proceedings will be dropped if Spicejet complied with its directions within a with by July 8.The division bench of the Delhi High Court on May 27 had asked SpiceJet Ltd to hand over two Boeing aircraft and three aircraft engines along with technical records to its lessor TWC Aviation Capital on or before June 17 for failing to pay dues of $14 million, as ruled by a UK court.On May 15, a single judge in an interim order had asked SpiceJet to return the aircraft and engines to TWC by May 28 while noting that the airline had failed to meet earlier payment deadlines.Senior counsel Amit Sibal, appearing for Spicejet, while seeking one-month extension of time informed the court that the airline has returned the two aircraft, but wants some time for handing over the engines to the lessor.He further argued SpiceJet has entered into agreements for replacement of two engines from two other lessors and has paid one million dollars each as security and $65,000 per month towards lease rental.However, there is some delay on the part of lessors in securing the engines from third parties. He assured the court that engines would arrive soon within four days.Senior counsel Dayan Krishnan, on behalf of TWC, argued that SpiceJet has not paid even a single penny to TWC but has enough to pay others. He also said that returning of airccraft frames doesnt mean anything as they can’t fly them without the engines, which SpiceJet continues to use. “I just can’t fly flaps without engines,” he contended.