New Delhi, India: Low-cost carrier SpiceJet is facing renewed legal pressure after France-based aircraft engine lessor Sunbird France 02 SAS approached the Delhi High Court to enforce a UK Commercial Court judgment directing the airline to pay nearly $8 million in unpaid lease rentals and maintenance dues related to three aircraft engines.
The enforcement proceedings mark the latest chapter in a long-running dispute between the airline and the French lessor, adding to SpiceJet’s growing list of legal and financial challenges.
According to court filings, the dispute concerns three aircraft engines leased to SpiceJet in 2019. Sunbird alleges that the airline failed to meet its payment obligations under the lease agreements, resulting in substantial outstanding lease rentals and maintenance accruals.
The unpaid maintenance charges reportedly date back to November 2020, while unpaid lease rentals accumulated from January 2022 onward. After issuing default notices in July 2022, the lessor eventually repossessed the engines in stages, taking back two engines in December 2022 and the third in July 2023.
Following the repossession, Sunbird initiated legal proceedings before the Commercial Court of England and Wales, seeking recovery of unpaid rent and maintenance charges linked to the three engines.
On March 13, 2026, the London Commercial Court granted summary judgment in favour of Sunbird France 02 SAS, awarding approximately US$7.96 million. The court concluded that SpiceJet had no realistic prospect of successfully defending the claim.
The UK court also recorded that although SpiceJet had initially appointed solicitors in the matter and had been properly served, it ultimately did not file a defence or participate in the proceedings. As a result, the court proceeded to issue judgment without a full trial.
With the UK ruling remaining unpaid, Sunbird moved the Delhi High Court seeking recognition and enforcement of the foreign decree in India.
The matter came up before Justice Vikas Mahajan, where Sunbird argued that the English judgment satisfies the requirements for enforcement under Indian law and should be executed against the airline’s assets.
The lessor sought urgent interim protection from the court, expressing concerns over SpiceJet’s financial condition and the possibility that recovery efforts could become more difficult if the airline’s financial position deteriorates further.
During the proceedings, Sunbird’s legal team pointed to multiple insolvency-related proceedings pending against SpiceJet before the National Company Law Tribunal (NCLT). The lessor argued that disclosure of assets was necessary to safeguard its interests while enforcement proceedings continue.
The Delhi High Court subsequently directed SpiceJet to disclose its assets through an affidavit to be submitted in a sealed cover. The court granted the lessor liberty to seek urgent relief during the court vacation if circumstances warrant such action.
Sunbird also referred to reports concerning advance salary payments allegedly made to SpiceJet Chairman and Managing Director Ajay Singh while lease-related liabilities remained outstanding. The lessor cited these reports while arguing for interim protection measures.
SpiceJet opposed immediate coercive measures and resisted demands for asset disclosure at the initial stage. Senior counsel representing the airline argued that SpiceJet remains a functioning airline and should not be treated as an entity attempting to evade its obligations.
The airline informed the court that it continues to operate approximately 135 flights daily, carries around 21,000 passengers each day and employs nearly 6,400 personnel. SpiceJet maintained that any aggressive recovery action could adversely affect operations and stakeholders.
The carrier also raised objections relating to the maintainability and enforceability of the execution proceedings, contending that those issues should be decided before any substantive interim relief is granted.
The latest dispute emerges against the backdrop of SpiceJet’s broader financial difficulties. The airline has spent the past several years dealing with the effects of the Boeing 737 MAX grounding, disruptions caused by the COVID-19 pandemic, increased competition in the domestic market and multiple legal battles involving aircraft lessors, creditors and other claimants.
The Sunbird matter is not the first legal confrontation between the parties. Court records show that disputes involving Sunbird France and affiliated lessor Team France had been ongoing since at least 2023 over alleged defaults under engine lease agreements. Earlier proceedings before Indian courts involved payment schedules, settlement discussions, repossession disputes and court-monitored arrangements intended to allow SpiceJet to continue operating leased engines while resolving outstanding dues.
Despite those efforts, the dispute eventually escalated into proceedings before the UK Commercial Court, culminating in the March 2026 judgment now being pursued in India.
As the case enters the enforcement stage, the Delhi High Court is expected to examine whether the foreign judgment satisfies statutory requirements for execution in India and whether any interim protective measures are warranted pending final adjudication.
For now, the court has directed SpiceJet to place details of its assets on record in a sealed cover, while Sunbird continues its efforts to recover the amount awarded by the UK court.
