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SpiceJet has agreed to enter into a settlement with De Havilland Aircraft of Canada Limited (DHC). The Canadian aircraft manufacturer had earlier moved the Delhi High Court for the enforcement of $42.9 million in damages awarded against SpiceJet by a UK court.
“SpiceJet has entered into a settlement agreement with De Havilland Aircraft of Canada Limited (DHC),” SpiceJet said on Wednesday in a press statement.
BusinessLine had reported that both companies were mulling an out-of-court settlement.
“All related proceedings before the UK Court and execution proceedings before the Delhi High Court have been stayed and will be withdrawn upon compliance with the settlement terms,” It added.
In 2017, SpiceJet had signed a purchase agreement for 25 Q-400 aircraft. It took delivery of five aircraft but failed to make pre-delivery payments for fifteen aircraft in the order. It also did not take delivery of three of those planes. Later, the Canadian aircraft manufacturer suspended the contract.
In February 2020, De Havilland sued the low-cost carrier for the same in a UK High Court. Earlier this year, the UK court upheld De Havilland’s claims and said that it was entitled to recover $42.9 million in liquidated damages from the airline.
Read more:Spicejet, De Havilland mull over out-of-court settlement for non-payment of dues
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