Home / Business and Economy / SpiceJet Chairman Cleared in Contempt Case
SpiceJet Chairman Cleared in Contempt Case
4 Aug
Summary
- Contempt proceedings against Ajay Singh were closed by Delhi High Court.
- SpiceJet has substantially complied with returning leased assets.
- Lessor TWC Aviation can pursue remaining records via execution petition.
The Delhi High Court concluded contempt proceedings against SpiceJet promoter Ajay Singh on Tuesday. The court ruled that the case could not proceed further due to substantial compliance with the directives.
SpiceJet has returned a significant portion of the leased assets, leading the division bench to close the contempt case. TWC Aviation Capital, the lessor, had opposed the closure, citing outstanding technical records and aircraft parts.
The court clarified that TWC Aviation is free to file a separate execution petition to recover any remaining technical records or aircraft parts. This means the lessor can pursue enforcement of the decree through other legal channels.
The original dispute stemmed from a July 2, 2024, order directing SpiceJet to return all leased assets to TWC Aviation by July 8, 2024. TWC Aviation claims approximately $16 million in rental dues from SpiceJet for two Boeing aircraft and three engines leased in 2019.
This case is part of ongoing financial and legal pressures for SpiceJet. The airline faces multiple insolvency petitions from lessors and creditors at the National Company Law Tribunal. Furthermore, it is involved in a long-standing dispute with Kalanithi Maran and KAL Airways regarding a 2015 stake transfer, with SpiceJet committed to depositing ₹144.5 crore in phases.
