SpiceJet $8m dues case: Delhi HC seeks assets in 2 weeks

What the Delhi High Court asked SpiceJet to do

The Delhi High Court has directed SpiceJet to file an affidavit disclosing its assets within two weeks, as a dispute with France-based aircraft engine lessor Sunbird France 02 SAS moves into the enforcement stage. The lessor is seeking recovery of about $1 million in unpaid lease rentals and maintenance dues related to aircraft engines.

Justice Vikas Mahajan issued the direction after Sunbird sought disclosure of the airline’s assets so it could seek protective orders if the dues remain unpaid. The case adds to SpiceJet’s ongoing legal pressures at a time when the airline has acknowledged financial constraints in court.

Who is suing, and what is the claim about

Sunbird France 02 SAS has approached the Delhi High Court to enforce a UK Commercial Court judgment. The UK court’s March ruling directed SpiceJet to pay around $1 million towards lease rentals and maintenance dues for three aircraft engines leased to the airline in 2019.

The amount has also been reported as nearly $1 million, approximately ₹66 crore, reflecting the scale of the claim in Indian currency terms. The enforcement petition in Delhi is aimed at turning the UK judgment into an executable outcome in India.

How the hearing unfolded before Justice Vikas Mahajan

During proceedings this week, Justice Mahajan asked SpiceJet to disclose its assets through an affidavit. Sunbird argued for urgent protection measures, including immediate disclosure, citing the airline’s financial condition and the need to secure recovery.

SpiceJet’s counsel sought time to obtain instructions on the issue. The court is expected to take up the matter again on whether SpiceJet should be directed to disclose its assets, with the next hearing listed for Monday. The matter is also expected to be heard after the court vacation.

Why Sunbird asked for “protective” directions

Sunbird told the court it needed disclosure of SpiceJet’s assets so it could seek protective orders if the airline failed to clear its dues. In disputes involving enforcement of foreign judgments, such steps can be sought to reduce the risk of asset dissipation or delays in recovery.

The lessor’s request reflects a broader concern that recovery could become harder if the counterparty’s financial position deteriorates further. The court’s direction to file an affidavit is tied to this request for interim protection.

SpiceJet’s response: maintainability and operational concerns

SpiceJet contested the maintainability of Sunbird’s execution petition by questioning the power of attorney filed by the lessor. According to SpiceJet, the power of attorney was neither stamped nor had stamp duty been paid under the Indian Stamp Act.

The airline also opposed any immediate order for disclosure of assets. Senior counsel Amit Sibal, appearing for SpiceJet, argued that the carrier is a running airline and not a fly-by-night operator, and that coercive directions could disrupt operations. He also raised concerns that an immediate disclosure direction could affect other pending proceedings involving the airline.

SpiceJet’s financial position mentioned in court

In the course of the proceedings, SpiceJet told the court it currently lacked funds to clear the dues. It also said it had limited assets apart from a property in Gurugram.

These statements formed part of the context for Sunbird’s request for urgent protective measures. They also underscore why enforcement actions are being pursued at this stage rather than the dispute being limited to contractual claims.

The UK Commercial Court judgment that triggered enforcement

Sunbird’s Delhi High Court petition is anchored in a UK Commercial Court judgment from March. The UK court granted summary judgment in favour of Sunbird France 02 SAS over unpaid rent and maintenance accruals, finding that SpiceJet had no viable defence.

With that judgment in place, the lessor is now attempting to execute it in India, which typically involves court scrutiny of documents and compliance requirements, including issues raised by SpiceJet on stamping and authorisation.

Key facts at a glance

Market and investor relevance

For SpiceJet, the proceeding is a reminder that litigation linked to aircraft leasing and maintenance can quickly turn into enforcement risk when dues remain unpaid. An affidavit-backed disclosure direction can become significant because it may shape the next set of court orders, including potential protective measures sought by the claimant.

For investors and other stakeholders, the case highlights the operational and financial strain that can follow when major counterparties pursue recovery through courts. While the article does not provide stock movement data, the size of the claim and the legal process around asset disclosure are material developments for a listed airline facing multiple disputes.

Why this case matters for the aviation leasing ecosystem

The dispute also reflects the tighter stance lessors may take when faced with missed payments and maintenance-related accruals. Engines are high-value assets, and maintenance obligations are central to leasing contracts, making disputes over rentals and upkeep a frequent trigger for litigation.

When a foreign judgment is involved, enforcement in India can bring in procedural objections and document scrutiny, like SpiceJet’s argument about stamping under the Indian Stamp Act. These issues can influence timelines even when the core claim has already been adjudicated abroad.

What to watch next

The immediate next milestone is SpiceJet’s affidavit on assets, which the court has directed to be filed within two weeks. The next hearing is expected to consider the question of whether SpiceJet should be directed to disclose its assets and what interim protections, if any, may be appropriate.

The case will proceed once the court resumes hearings after the vacation, with both sides expected to argue on enforcement mechanics, the maintainability objections raised by SpiceJet, and the scope of any protective orders sought by Sunbird.