Sunbird France moves Delhi High Court to enforce Rs 70 crore UK judgment against SpiceJet – Firstpost

France-based aircraft engine lessor Sunbird has approached the Delhi High Court seeking enforcement of a UK Commercial Court judgment against SpiceJet, aiming to recover nearly $8 million (around Rs 70 crore) in unpaid lease rentals and maintenance dues.

The move marks another escalation in the airline’s mounting cross-border legal disputes, as creditors intensify recovery efforts amid SpiceJet’s prolonged financial stress.

UK ruling at centre of dispute

The enforcement plea stems from an
April order of the UK Commercial Court, which held SpiceJet liable for dues related to three aircraft engines leased in 2019.

According to the judgment, SpiceJet defaulted on lease rentals from January 2022, while maintenance reserve payments remained outstanding since November 2020. The court noted that the airline did not file a defence or participate in the proceedings despite being served.

The UK court granted summary judgment in favour of Sunbird, observing that SpiceJet had “no real prospect” of defending the claim and had effectively chosen not to contest the case.

Delhi High Court hearing

The matter was heard by the Delhi High Court on Thursday, where Justice Vikas Mahajan directed SpiceJet to file an affidavit disclosing its assets. The airline, however, sought time to obtain instructions.

Senior advocate Amit Sibal, appearing for SpiceJet, opposed immediate disclosure directions, arguing that the airline continues to operate as a full-service carrier and that coercive orders could disrupt operations.

“It’s a running airline… This is not a fly-by-night operator,” he said, adding that SpiceJet operates around 135 flights daily, carries nearly 21,000 passengers, and employs about 6,400 people.

Lessors seek safeguards

Representing Sunbird, senior advocate Rajshekhar Rao said the lessor was not seeking to halt operations but only to secure recovery rights during the pendency of proceedings.

He also questioned SpiceJet’s financial decisions, pointing to alleged large payments made to senior management despite outstanding dues to creditors.

“The chairperson, Mr. Singh, is paid $3.4 million in advance by way of salary for five years in September 2025, when monies are owed to the world at large,” Rao submitted.

Sunbird has also sought interim protection restraining SpiceJet from alienating or creating third-party rights over its assets, except in the ordinary course of business.

Engine lease dispute

The case relates to three engines leased in 2019. Sunbird alleged that rentals stopped from January 2022, with only a partial payment of $7,088 received in May 2024. Maintenance accruals remained unpaid since November 2020.

Following default notices in July 2022, the lessor repossessed the engines between December 2022 and July 2023.

The UK proceedings covered Engines 161, 482 and 925, with total dues of about $7.96 million.