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A UK Commercial Court allowed an application for summary judgment filed by an engine lessor against SpiceJet.1 The lessor had filed a debt claim for unpaid lease rentals, and the Court was convinced that there was no real prospect of any defence.
Background
The lessor had leased three aircraft engines to SpiceJet, which started defaulting on lease rentals from November 2020. The engines were repossessed between December 2022 and July 2023.
The lessor filed proceedings for unpaid rent in the UK. SpiceJet initially engaged English solicitors to correspond on its behalf but thereafter did not file any defence to the claim, nor did it take any formal steps in response.
Decision
Before considering the merits, the Court examined the issue of service. The Court was satisfied that there had been valid and proper service. The Court held that despite having instructed English solicitors and being afforded every opportunity to participate, SpiceJet decided not to file any defence nor take any formal procedural steps.
The Court was also cognisant of the fact that while the lessor was entitled to a judgment in default, Indian law required a judgment to be passed on merits, to be enforced in India. In this context, the UK Court specifically took note of §13 of the Indian Civil Procedure Code which sets out the conditions in which a foreign judgment is treated as inconclusive.
Accordingly, on merits, the Court held that:
- Unpaid rents of c. US$ 7.96 million were straightforward contractual dues.
- There was no dispute regarding the contract terms.
- There was unchallenged witness evidence that the rent and maintenance accruals had been properly charged and SpiceJet had not paid them.
- There was no realistic defence against the claim.
Conclusion
The decision highlights that English courts are now mindful of the requirements under Indian law to enforce a foreign judgment. It also underscores the importance of ensuring valid and proper service of Court proceedings, especially in cross border disputes.
Footnote
1. [2026] EWHC 831.
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