Once settlement terms are complied with, all legal proceedings will be withdrawn from the UK Court and Delhi HC
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Domestic carrier SpiceJet has entered into a settlement deal with De Havilland Aircraft of Canada (DHC) and all legal proceedings have been stayed for compliance.
DHC manufacturers the DHC-8-400 aircraft. It moved the Delhi Court against the Indian airline, seeking payments for the order of a Q400 aircraft that was not paid. The manufacturer has now stopped production of the aircraft.
“The parties have agreed to settle all their disputes under and related to the aircraft purchase agreement and component solution agreement, subject to compliance with the terms of settlement,” according to a statement from SpiceJet issued on December 15.
“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proceedings before the UK Court and execution proceedings before the Delhi High Court have been stayed and will be withdrawn upon compliance with the settlement terms,” it said.
SpiceJet is also battling an unsettled dispute with KAL Airways, its former owner. Ajay Singh, the current chairman of SpiceJet, bought the airline after the December 2014 crisis.
This is a developing story, stay tuned for more updates…