Delhi High Court - Orders
Team France 01 S A S vs Spicejet Limited on 4 January, 2024
Author: Prathiba M. Singh
Bench: Prathiba M. Singh
$~6 & 7
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ CS(COMM) 908/2023, 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. Priyal Shah, Ms. Akshita Totla,
Ms. Mansi Tyagi, Ms. Vishakha
Gupta, Mr. J Shivam Kumar, Ms.
Pritha Banerjee, Advs. (M.
9079025647)
versus
SPICEJET LIMITED ..... Defendant
Through: Mr. Sandeep Sethi Sr. Adv. Mr. K.R.
Sasiprabhu, Mr. Kartikeya Asthana,
Mr. Tushar Bhardwaj, Mr. Manan
Shishodia, Advs along with General
Manager Legal (M. 885138279)
7 WITH
+ CS(COMM) 909/2023, 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. Priyal Shah, Ms. Akshita Totla,
Ms. Mansi Tyagi, Ms. Vishakha
Gupta, Mr. J Shivam Kumar, Ms.
Pritha Banerjee, Advs. (M.
9079025647)
versus
SPICEJET LIMITED ..... Defendant
Through: Mr. Sandeep Sethi Sr. Adv. Mr. K.R.
Sasiprabhu, Mr. Kartikeya Asthana,
CS(COMM) 908/2023 & CS(COMM) 909/2023 Page 1 of 4
This is a digitally signed order.
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The Order is downloaded from the DHC Server on 05/01/2024 at 22:30:29
Mr. Tushar Bhardwaj, Mr Manan
Shishodia, Advs along with General
Manager Legal (M. 885138279)
CORAM:
JUSTICE PRATHIBA M. SINGH
ORDER
% 04.01.2024
1. This hearing has been done through hybrid mode.
2. Ld. Counsels for both the parties submit that they have no objection to this Bench hearing the matter.
3. CS (Comm) 908/2023 has been filed by the Plaintiff- Team France 01 S.A.S against the Defendant-Spicejet Ltd. The Plaintiff, a French company and a subsidiary of Total Engine Asset Management, Singapore, specialises in providing spare engine sale and lease-back support packages for the commercial airline industry. It is averred that the Plaintiff leased two aircraft engines bearing nos. ESN 602805 and ESN 602776 to the Defendant, vide lease agreements dated 14th December, 2018. Aggrieved by the default in payment obligations, the Plaintiff seeks specific performance of the Defendant's contractual obligations to hand over possession of these engines, which are being held following the termination of the lease agreements.
4. The second suit being CS(COMM) 909/2023, has been filed by the Plaintiff-Sunbird France 02 S.A.S against the same Defendant. It is averred that the Plaintiff had leased four aircraft engines, including engine bearing no. ESN 854096, to the Defendant vide lease agreement dated 29th March, 2018. This suit seeks specific performance of the Defendant's obligation to hand over possession of the engines, which have been retained following the termination of the lease agreement.
CS(COMM) 908/2023 & CS(COMM) 909/2023 Page 2 of 4This 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 05/01/2024 at 22:30:29
5. Vide order dated 19th December, 2023, this Court directed as follows:-
"3. Learned senior counsel for the defendant, who appears on advance notice, at the very outset, submits that while the defendant does not deny that a huge amount is still payable to the plaintiff, the actual amount can be determined only after reconciliation of the accounts. He, further, submits that the defendant has every intention to clear the outstanding dues of the plaintiffs and therefore, prays that time be granted to the defendant to show its bonafide. He assures the Court on instructions from the General Manager (Legal) of the defendant, that a sum of USD 50,000/-
will be positively paid to the plaintiff on or before 21.12.2023 and a further sum of USD 200,000/- by 29.12.2023 whereafter another sum of USD 200,000/- will be paid on or before 03.01.2024. He, therefore prays that issuance of summons in the suits be deferred till then.
4. Even though learned senior counsel for the plaintiff opposes this request by contending that the intention of the defendant is not bonafide as the defendant has failed to abide by its similar promises made in the past, taking into account that this assurance is being given before this Court, hearing being is deferred with a direction to the defendant to file an affidavit, within ten days, setting out the manner in which they intend to liquidate the outstanding dues of the plaintiff as also to restore the delivery of the engines to the plaintiff unless the lease is mutually extended."
6. In accordance with the previous order, certain payments were to be made by the Defendant to the Plaintiff. The payments as per the above order are stated to have been made but one such payment, due on 3rd January 2024, is yet to be made. Mr. Sethi, ld. Senior Counsel, assures that this payment will be made by 5th January, 2024. An affidavit of compliance 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 05/01/2024 at 22:30:29 dated 4th January, 2024, which includes a proposal, has been handed over to the Court.
7. Heard. Let the said affidavit be placed on record. The Plaintiff also seeks time to receive instructions by the next date of hearing. It is made clear that if the payment, in terms of the previous order, is not paid by 5th January, 2024, the Court would have no option but to proceed further in the matter.
8. Insofar as the engines and other aircrafts leased out by the Plaintiff are concerned, Mr. Rao, ld. Sr. Counsel expressed concern that some of the aircrafts and engines, which may not be the subject matter of these suits, are not being properly maintained by the Defendant, potentially leading to a loss in their value over time.
9. Accordingly, if the Plaintiff wishes to carry out an inspection of any of the aircrafts or engines leased out to the Defendant, it is free to write a communication to the Defendant. Upon such communication being received, the inspection shall be offered within five working days.
10. List on 29th January, 2024.
PRATHIBA M. SINGH, J.
JANURARY 04, 2024 mr/dn 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 05/01/2024 at 22:30:30