Soni Satti
The UK High Court of Justice has ruled in favour of Canadian Aircraft Manufacturer De Havilland in a contractual dispute with SpiceJet. The High Court of Justice stated that it is entitled to recover $42.9 million in liquidated damages from the airline.
The Canadian company had dragged SpiceJet to court for failing to make pre-delivery payments for the order of 25 Dash 8-400 aircraft.
A Statement from Brick Court Chambers, UK also dismissed SpiceJet’s counterclaim for damages.
Seeking $42.9 million in liquidated damages, De Havilland had also requested the court for terminating the purchase agreement.
The court ruled in favour of the aircraft maker, stating
“If SpiceJet defaulted on the PDPs, De Havilland was entitled to terminate the relevant aircraft and claim liquidated damages under Article 15.4(c) (“Liquidated Damages Provision”). If De Havilland lawfully terminated a total of four or more Aircraft, it was entitled to terminate the entire purchase agreement,” Brick Court Chambers, UK, stated.
Notably, a separate application has to be filed in Indian courts to implement the UK court order. A SpiceJet spokesperson said: “The same court has allowed appeal against the order and we shall be doing the same within the timeframe provided by the court”.