Delhi HC closes contempt case against SpiceJet's Ajay Singh in lessor dispute
The Delhi High Court on Tuesday closed contempt proceedings against SpiceJet promoter and chairman Ajay Singh in a dispute with aircraft lessor TWC Aviation Capital
The Delhi High Court on Tuesday closed contempt proceedings against SpiceJet promoter and chairman Ajay Singh in a dispute with aircraft lessor TWC Aviation Capital, ruling that the case could not continue as substantial compliance had already taken place. However, the court left the door open for the lessor to pursue a separate execution petition to recover any remaining technical records or aircraft parts. TWC opposed closing the contempt case, arguing that SpiceJet has yet to hand over certain technical records and aircraft parts. The court clarified that while the contempt proceedings were being disposed of, the lessor remained free to seek recovery of any outstanding records or parts through separate execution proceedings. The division bench of Justice Anil Kshetarpal and Justice Shail Jain recorded that SpiceJet had already returned a substantial portion of the leased assets.
“In the meantime, the single judge suit has been disposed of. The aforesaid decree can be executed by filing execution petition,” the bench said while dictating its order in court. Counsel for TWC Aviation told the bench the lessor would file an execution petition before a single-judge bench of the Delhi High Court. An execution petition is a formal legal request seeking enforcement of a court judgment when the losing party does not comply voluntarily. It is the final stage of a civil proceeding used to secure money, property or other relief awarded by the court. Mint's queries to SpiceJet and TWC Aviation Capital remained unanswered until press time. The litigation stems from a 2 July 2024 Delhi High Court order directing SpiceJet to return all leased assets, including the airframes, engines and technical records, to TWC Aviation by 8 July 2024.
TWC Aviation claims rental dues of about $16 million from the airline. The lessor leased two Boeing aircraft and three engines to SpiceJet in 2019 for a 12-month period, but the airline allegedly defaulted on monthly lease payments of $180,000. The dispute escalated during the pandemic, leading to litigation in both India and the UK. In March 2024, the High Court of Justice in London granted an interim injunction restraining SpiceJet from using TWC's engines on other aircraft over concerns about misuse and potential damage. Lessor disputes The TWC dispute is one of several legal battles between SpiceJet and aircraft lessors over unpaid lease rentals, recovery of aircraft and engines, maintenance records and other dues. The airline also continues to face insolvency pressure, with a special bench of the Company Law Tribunal (NCLT) hearing multiple petitions filed by aircraft lessors and other operational creditors over alleged payment defaults.
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