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If you cannot pay the lessor, attach assets : HC to SpiceJet

Updated: Jul 8

On Friday, the Delhi High court asked SpiceJet that why should its assets not be attached and sold to enforce the decrees passed in the UK court. The decrees passed by the UK court involved SpiceJet paying $5.33 Million and $8.49 Million to its lessor GASL Ireland Leasing. In an earlier order passed by Delhi High court, SpiceJet was warned of paying its lessor fast or the court would take necessary action steps to ground its aircraft’s in service. However, SpiceJet in its recent hearing contested that the attachment of assets is not necessary as it will not augur well for the airline. SpiceJet also submitted that they are working on a settlement proposal that could take place between them and the lessor like they have done with the previous lessor.





On hearing the submissions of SpiceJet, the counsel of lessor submitted that the condition of SpiceJet remained doubtful and it should attach assets to pay of the lessor soon. Counsel for SpiceJet in response to this cleared that there is no question of insolvency as SpiceJet has raised Rs. 1200 crores from equity from which it will pay of its debtors. SpiceJet also submitted that they are looking to raise another Rs. 2000 crores soon

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