The Supreme Court on Friday, however, stayed for three weeks the order of winding up SpiceJet after the airline claimed that it was looking to settle the dispute over its outstanding dues with Swiss company, Credit Suisse
Credit Suisse has demanded that SpiceJet, the Ajay Singh-promoted company, settle a dispute over its outstanding dues with the Swiss company. SpiceJet has challenged an order before a division bench. The Supreme Court on Friday, however, stayed for three weeks the order of winding up SpiceJet after the airline claimed that it was looking to settle the dispute over its outstanding dues with Swiss company, Credit Suisse.
A Bench of Chief Justice of India NV Ramana, Justices AS Bopanna and Hima Kohli stayed the winding up order for three weeks to await the measures taken by the airlines’ management to resolve the dispute.
Senior advocate Harish Salve, appearing for SpiceJet, told the Bench that the airline would attempt to resolve the issues with Credit Suisse in three weeks. The Bench cautioned SpiceJet and said if it did not want to pay its dues to Credit Suisse and others, then it would be declared insolvent.
“You want to run the airlines or close it? Why don’t you produce your financial status? This is not the way you can run your airlines. What is your contribution? It’s a serious matter, if they (SpiceJet) don’t want to run airlines we will declare insolvent and go for liquidation,” said CJI to Salve. SpiceJet Limited has approached the apex court against the Madras High Court order of winding up the company
As per Switzerland-based company Credit Suisse AG, SpiceJet had failed to honour its commitment to pay the bills for over 24 million dollars raised by the Swiss company towards maintenance, repairing, and overhauling of the aircraft engines and components. Recently, the division bench of the Madras High Court had upheld the December 6, 2021, verdict of a single judge ordering the winding up of SpiceJet Limited and directing the official liquidator attached to the High Court to take over the assets of the company. The single judge had suspended the operation of his order for a limited period with a direction to the company to remit 5 million dollars, as a condition precedent to avail the interim relief.
The division bench, by its order on January 11, however, extended the operation of the interim stay granted by the single judge, till January 28 to enable the airliner to prefer an appeal before the Supreme Court. SpiceJet had moved the division bench against the single judge order.
The company had prayed before the single judge for winding up of SpiceJet under the provisions of the Companies Act, 1956, and appoint the Official Liquidator of the High Court as the Liquidator of SpiceJet with all powers under Section 448 of the Companies Act to take charge of its assets, properties, stock in trade and books of accounts
The winding-up petition before the High Court’s single judge was moved by Credit Suisse AG claiming that SpiceJet was indebted to it for more than 24 million dollars and alleged that the private carrier was unable to pay the debts owed to the firm. According to the Credit Suisse AG, a stock corporation registered under the laws of Switzerland, SpiceJet had availed services of SR Technics, Switzerland, for maintenance, repair, and overhauling of aircraft engines, modules, components, assemblies, and parts that are mandatory for its operations. On November 24, 2011, a ten-year contract was signed between SR Technica and SpiceJet.
Meanwhile, SR Technics entered into a financing agreement with Credit Suisse AG on September 26, 2012 and assigned all its present and future rights to receive payments to Credit Suisse. Credit Suisse said it made repeated requests to SpiceJet to make payments under the various invoices and since SpiceJet did not honour its commitment, the Swiss company issued a statutory notice under the Companies Act. As the notice did not evoke any response, Credit Suisse said it moved the plea for liquidation and winding up of SpiceJet.
The company had prayed before the single judge for winding up of SpiceJet under the provisions of the Companies Act, 1956 and appoint the Official Liquidator of the High Court as the Liquidator of SpiceJet with all powers under Section 448 of the Companies Act to take charge of its assets, properties, stock in trade and books of accounts.
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