SC grants stay on Madras HC order to wind up SpiceJet
Premium- Harish Salve, senior counsel for SpiceJet informed the apex court that the airline was trying to resolve the matter with Credit Suisse and sought three weeks for resolving it
MUMBAI : The Supreme Court of India has granted a stay on the Madras High Court’s order directing the winding up of SpiceJet Ltd. The apex court has granted three weeks to SpiceJet to resolve the matter with Credit Suisse AG.
The matter pertains to a Madras High Court order that directed the winding up of SpiceJet after it failed to clear dues given by Credit Suisse. The airline is challenging unpaid dues to the tune of ₹180 crores, claimed by Swiss Financial Services, Credit Suisse AG.
Harish Salve, senior counsel for SpiceJet informed the apex court that the airline was trying to resolve the matter with Credit Suisse and sought three weeks for resolving it.
Chief Justice N V Ramana today asked SpiceJet to provide the financial status of the company. It asked the airlines, “What is this you want to run this or close the show".
“This is not the way you can run the airlines... You cannot say that you are busy airlines and not pay the dues, what is your contribution?" he asked.
“It is a serious matter, if you do not want to run the airlines, we can declare you as insolvent and refer the airlines to liquidation", Chief Justice N V Ramana said.
On Tuesday, SpiceJet Ltd moved the Supreme Court against a Madras high court order that had directed winding-up proceedings of the airline company.
In the second week of January, the high court had turned down an appeal by SpiceJet against a December order by a single-judge bench to wind up its operations after the airline failed to make payment of over $24 million to Swiss maintenance, repair and overhauling (MRO) service provider SR Technics.
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A division bench of the high court comprising judges Sathi Kumar Sukumara Kurup and Paresh Upadhyay, however, extended a stay order on the judgement till 28 January, allowing SpiceJet to approach the apex court.
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