In MSN 1364 Leasing Limited & Or v Big Charter Pvt Ltd [2025] EWHC 3154 (Comm), Paul Stanley KC (sitting as a Deputy High Court Judge) awarded the Claimants, lessors of two ATR 72-600 aircraft, summary judgment against an Indian airline as lessee (Big Charter Pvt Ltd, t/a ‘FlyBig’), over parts of their claim for which summary judgment was sought (principally in respect of unpaid rent and other amounts under the leases). Frederick Alliott, instructed by Hugo Flaux of A&O Shearman, represented the successful claimants.
The Defendant, who engaged with proceedings at a late stage, raised various arguments as to why the application should not succeed. In particular, it was argued that the termination of the aircraft leases was not commercially reasonable under the Cape Town Convention; that certain ‘late payment charges’ under the leases were irrecoverable as they were in the nature of penalties; and that, pursuant to the terms of the leases and as a matter of law, the lessees were entitled to set off certain security deposits held by the lessors against the sums claimed under the leases. These points, among others, were rejected by the Judge as not disclosing a reasonable prospect of success or other good reason for trial.
It was further argued by the Defendant, on a point which the Judge allowed short post-hearing submissions to be advanced on paper, that certain assignments of the leases, relied on by the Claimants, were not absolute assignments at law under s.136 of the Law of Property Act 1925 but only took effect in equity; and thus the assignor (a third party to proceedings) needed to be joined as a party. On this point, whilst deciding that the question whether the assignments of the leases were legal or equitable was arguable, the Judge decided that, for a variety of reasons, he could be satisfied (such that the contrary was not reasonably arguable) that the joinder of the assignor, a procedural rather than substantive requirement which the Court could dispense with, was unnecessary.
The Court thus awarded summary judgment to the Claimants in relation to the sums claimed in full, together with a full contractual indemnity in respect of their costs.
