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SpiceJet gets 3-week breather in winding up case

SpiceJet gets 3-week breather in winding up case

The stay order came after the airline said that they were working something out and needed a little time.

SpiceJet, on Friday, was granted a breather of three weeks by the Supreme Court in the 'winding up' case. The stay order came after the airline said that they were working something out and needed a little time. The case pertains to a plea filed by Swiss financial services company Credit Suisse AG to wind up the airline after a long standoff over unpaid dues of nearly Rs 180 crore.

Senior advocate Mukul Rohtagi who appeared for SpiceJet appeared before the Supreme Court and urged the bench to hear the case urgently. "This is regarding winding up of Airline SpiceJet. Please list on Friday otherwise the airline will fold up," he told the apex court, following which the hearing for Friday was scheduled.

A SpiceJet spokesperson said, "The Supreme Court has today stayed the Madras High Court order against SpiceJet to facilitate settlement between SpiceJet and Credit Suisse. Both parties are already in advanced discussions to settle the matter."

The stay comes after the Madras High Court dismissed the airline’s appeal against admission of its winding up on Credit Suisse AG's petition. SR Technics in Switzerland had reportedly carried out aircraft maintenance, repair and other services through an agreement with a lifetime of 10 years in 2011. SpiceJet and Credit Suisse signed a supplemental agreement in 2021 that enabled them to repay the amount raised by SRT.

Credit Suisse AG had the rights to receive payments that were due to SRT in 2012 through a financial agreement. The agreement also entitled the third party to receive payments from SpiceJet under seven invoices that were raised by SRT. The Swiss firm stated that even after repeated requests SpiceJet shrugged off responsibilities to repay the money due as per the invoices.

Also read: Madras HC dismisses SpiceJet's appeal against winding up

Published on: Jan 28, 2022, 11:05 AM IST
Posted by: anwesha madhukalya, Jan 28, 2022, 11:00 AM IST