In a significant judgment on 30.09.2024, the Delhi High Court ruled that two aviation service providers (the Plaintiffs) are entitled to approximately Rs. 12 Crores, concluding an 8-year legal dispute initiated by SpiceJet’s termination of the Plaintiffs’ contract for the 2016 Haj Operations. This termination, deemed wrongful by the Court, has now been exposed as damaging to the overall operations.
The Plaintiffs had spent months preparing for SpiceJet’s 2016 Haj operations, setting up the necessary logistics and arrangements. Just as the preparations were complete, SpiceJet abruptly sought to terminate the contract on what the Court later deemed “frivolous grounds.” Despite benefiting from the Plaintiffs’ extensive groundwork, including leased aircraft arranged for the pilgrimage, SpiceJet suddenly ended the engagement, leaving the Plaintiffs no option but to seek legal recourse.
Advocate Mr. Bhuvan Mishra, representing the Plaintiffs, stated: “This judgment is a significant reaffirmation of the need for fairness and accountability in corporate partnerships. Our clients endured years of undue hardship due to the Defendant’s disregard for mutual agreements. Today’s judgment brings long-awaited relief and validates their commitment to seamless Haj Charter Operations.”
After nearly a decade of legal proceedings, the High Court ultimately found SpiceJet’s termination unjustified, underscoring the importance of accountability within the aviation sector, especially as the airline faces ongoing financial challenges.
This decision establishes a crucial precedent for fair treatment of service providers in the industry and raises concerns about SpiceJet’s financial health amid its increasing legal liabilities.
