Spicejet Tells Delhi HC That It Is Trying For Amicable Settlement On Air Tariff Dues Owed To AAI

Factual Background

• The case was SpiceJet Ltd. v. Airport Authority of India.
• The commercial airline SpiceJet Limited owed the Airport Authority of India payment of tariff of Rs. 158 Crores along with an accrued interest of Rs. 82 Crores on the amount.
• The company had approached the Court, seeking an extension of time for making the deposit and seeking for interim protection till the matter is settled.
• The AAI is seeking to encash the bank guarantee towards the repayment of the tariff and the company thus approached the Court.

Contentions Raised

• The counsel for the company informed the Court of the talks with the Civil Aviation Ministry Secretary.
• He urged for taking into consideration the hit that the airline industry has taken due to the pandemic and referred to a case where the Supreme Court had stated that the economy has been affected by the pandemic and that the civil aviation sector is also affected.
• The counsel for AAI opposed the extension on the ground that the representation before the Chairman has been made and it will be considered but refrained from stating on the Ministry as the counsel did not represent it.

Court’s Orders

• The Court stated that if the Ministry is talking, then they would not take any action.
• The Court had directed to submit a better payment plan of dues and asked the AAI to not initiate any action till the plan has been submitted.

Do you think the company needs an interim relief from the Court under the given circumstances? Tell us in the comments section below!