Delhi High Court - Orders
Team France 01 S A S vs Spicejet Limited on 1 May, 2024
Author: Prathiba M. Singh
Bench: Prathiba M. Singh
$~32 & 33
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ CS(COMM) 908/2023 and I.A. 25662/2023, 25663/2023
TEAM FRANCE 01 S A S ..... Plaintiff
Through: Mr. Rajshekhar Rao, Sr. Adv. with
Mr Anandh Venkataramani, Mr Saket
Satapathy, Mr Anubhav Dutta, Ms
Mansi Tyagi, Ms Akshita Totla, Mr J
Shivam Kumar, Ms Pritha Banerjee,
Advs. (M: 9079025647).
versus
SPICEJET LIMITED ..... Defendant
Through: Mr. K.R. Sasiprabhu and Mr.
Kartikeya Asthana Advocates (M:
8851382791).
33 WITH
+ CS(COMM) 909/2023 and I.A. 25664/2023, 25665/2023
SUNBIRD FRANCE 02 S A S ..... Plaintiff
Through: Mr. Rajshekhar Rao, Sr. Adv. with
Mr Anandh Venkataramani, Mr Saket
Satapathy, Mr Anubhav Dutta, Ms
Mansi Tyagi, Ms Akshita Totla, Mr J
Shivam Kumar, Ms Pritha Banerjee,
Advs. (M: 9079025647).
versus
SPICEJET LIMITED ..... Defendant
Through: Mr. K.R. Sasiprabhu and Mr.
Kartikeya Asthana Advocates (M:
8851382791).
CORAM:
JUSTICE PRATHIBA M. SINGH
ORDER
% 01.05.2024 CS(COMM) 908/2023 & CS(COMM) 909/2023 Page 1 of 4 This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 02/05/2024 at 22:19:51
1. This hearing has been done through hybrid mode.
2. On 28th March, 2024 the Court had directed the Defendant-Spicejet Limited to make payments for the use of three aircraft engines for the month of March, 2024. The relevant portion of the order is extracted hereinunder:
"6. Let the current payment for the month of March, 2024, for the use of three engines, be made within four weeks.
7. As part of the negotiations, the manner in which the Defendant intends to pay the past outstanding amounts of more than 20 million dollars shall also be discussed."
3. Vide order dated 29th April, 2024 the submission of Mr Sethi, ld. Senior Counsel was recorded wherein he stated that he would file an affidavit confirming as to how payments for the month of March, 2024 have been made. Further, vide the said order, the Court held that if the Defendant has not made any payment for the month of March, 2024, the three engines would be liable to be grounded. The relevant portion of the said order is hereinunder:
"7. Mr. Sethi, Id. Senior Counsel submits that he would file an affidavit by tomorrow i.e., 30th April, 2024 confirming as to how the payment for the month of March, 2024 has in fact being made.
8. If the Defendant has not made the payment for the month March, clearly, the three engines would be liable to be grounded."
4. Today, Mr. Kartikeya Asthana, ld. Counsel with instructions from Mr. Devjeet Ghosh and Mr. Om Kumar submits that the Defendant has all intentions to make the payments to the Plaintiffs in accordance to the orders of this Court dated 28th March, 2024 and 29th April, 2024. The ld. Counsel CS(COMM) 908/2023 & CS(COMM) 909/2023 Page 2 of 4 This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 02/05/2024 at 22:19:51 further submits that grounding of the engines would cause irreparable injuries to the Airline and also cut out further resources of revenue as two aircrafts would have to be grounded by the Defendant.
5. It is submitted by Mr. Kartikeya Asthana, ld. Counsel that payment for the month of March, 2024 has been made as a sum of 160,000 US Dollars has been paid on 1st March, 2024, 15th March, 2024, 28th March, 2024 and 23rd April, 2024. Thus, a total of 680,000 US Dollars is paid. This itself establishes the bonafide of the Defendant. The ld. Counsel further submits that the Defendant has been actively negotiating with the Plaintiffs and has agreed for certain proposals as well.
6. A perusal of the chart which has been handed over by the Plaintiffs today would show that the total dues including the past dues and the current dues is in the range of 10.84 million dollar i.e. approximately Rs. 90 crores.
7. Considering the past conduct of the Defendant where there has been default on payment of even the monthly engine use charges, however, bearing in mind the recent payments of approximately 680,000/- US Dollars, the Court is inclined to give one last opportunity to the Defendant to pay a sum of Rs.50 crores within a reasonable time. If the said amount cannot be paid by the Defendant, the Court would have no option but to ground the three engines which belong to the Plaintiffs. In addition, it is recorded that out of the three engines, one engine has already been grounded by the Defendant.
8. Ld. Counsel for the Defendant may, accordingly, take instructions on the following:-
i) Time period for depositing Rs.50 crores.
ii) Whether the one grounded engine can be returned to the
CS(COMM) 908/2023 & CS(COMM) 909/2023 Page 3 of 4
This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 02/05/2024 at 22:19:52 Plaintiffs and if so, by when.
9. List on 3rd May, 2024.
10. Order dasti.
PRATHIBA M. SINGH, J MAY 1, 2024 mr/rks CS(COMM) 908/2023 & CS(COMM) 909/2023 Page 4 of 4 This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 02/05/2024 at 22:19:52