05 April 2024 International Trade Law >> Miscellaneous  

A high-stakes legal battle is brewing in India's commercial courts as TWC Aviation Capital seeks to enforce orders from a UK court regarding two leased aircrafts and their engines. The case highlights the complexities of enforcing foreign judgments in India.

Lease Gone Wrong:

According to court documents, TWC Aviation Capital leased two Boeing 737 aircrafts and three engines to an unnamed Defendant under a contract. However, the Defendant allegedly failed to make the agreed-upon lease payments, prompting TWC Aviation to take legal action.

UK Court Orders Recovery:

TWC Aviation first approached the High Court of Justice in England and Wales (UK Court) citing a dispute resolution clause in the lease agreement. The UK Court issued two orders in March 2024, directing the Defendant to return the aircrafts and engines to TWC Aviation. These orders also included restrictions on using or moving the equipment.

Enforcement Sought in India:

Despite the UK Court orders, TWC Aviation claims the Defendant failed to comply. The company has now filed a suit in a high court in India seeking a declaration that the UK Court orders are valid and enforceable in India. TWC Aviation also wants to take possession of the aircrafts and engines, currently located within Indian territory.

Defendant's Potential Defense:

The court order suggests the Defendant might argue that TWC Aviation should have filed an execution petition instead of a lawsuit to enforce the UK Court orders. An execution petition is a legal process used to enforce existing judgments within India's judicial system.

Court Considers Enforceability:

The Indian court will determine the enforceability of the UK Court orders under Sections 13 and 44A of the Code of Civil Procedure (CPC). These sections deal with the recognition and enforcement of foreign judgments in India under specific conditions.

Next Steps:

The court has allowed TWC Aviation to inspect the aircrafts currently in India. The Defendant must file a response outlining how they intend to return the engines and submit a report on their usage since the lease termination. The next court hearing is scheduled for May 8th, 2024.

Unresolved Issues:

The outcome of this case will hinge on whether the Indian court deems the UK Court orders enforceable. The Defendant's response and the court's final decision will be crucial in determining how TWC Aviation recovers its leased equipment.