The Delhi high court directed cash-strapped airline SpiceJet to file an affidavit disclosing its assets within two weeks in a dispute with engine lessor Sunbird France 02 SAS, which seeks to recover about $8 million in unpaid lease rentals and maintenance dues.
Justice Vikas Mahajan passed the direction on Tuesday after Sunbird sought disclosure of SpiceJet’s assets so it could seek protective orders in case the airline failed to clear its dues. The matter will now be heard after the court vacation.
The lessor sought urgent protection measures like disclosure of assets in view of the airline’s financial condition. The Sunbird lawyer argued that SpiceJet is under financial stress and pointed to 16 insolvency pleas pending against the airline before the National Company Law Tribunal (NCLT), contending that the carrier could enter insolvency proceedings at any time.
The lessor’s legal team had earlier argued that despite pending dues to creditors, SpiceJet had paid advance compensation to chairman Ajay Singh.
“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,” the counsel submitted before the court.
Opposing coercive directions
SpiceJet had opposed immediate coercive directions, arguing that the airline was a running concern and not a “fly-by-night operator.” Senior counsel Amit Sibal, representing the airline, said such directions could disrupt operations, adding that SpiceJet operates about 135 flights daily, carries almost 21,000 passengers and employs 6,400 people.
The dispute arises from a judgment delivered by the Commercial Court in London on 13 March over three aircraft engines leased to SpiceJet in 2019. According to the UK judgment, Sunbird alleged that the airline stopped making lease payments from January 2022, except for one payment of $7,088.19 in May 2024, and defaulted on maintenance accrual payments from November 2020.
Following the alleged defaults, Sunbird repossessed two engines in December 2022 and the third in July 2023 before approaching the London court seeking recovery of $7.96 million. The UK court granted summary judgment in favour of Sunbird after recording that SpiceJet had not contested the proceedings despite being served.
