Wednesday, June 01, 2022

SpiceJet tells SC matter with Credit Suisse settled; seeks urgent hearing

Private airlines company SpiceJet Limited on Wednesday told the Supreme Court that it has reached a settlement over its outstanding dues with Swiss company Credit Suisse and sought an urgent listing of its plea challenging the winding order passed by the Madras High Court.

The plea for urgent listing of the case was mentioned by the counsel appearing for SpiceJet before a vacation bench headed by Justice Ajay Rastogi, which agreed to list the matter on Friday.

"There are obligations which have to be complied. It's only to take the settlement on record. Otherwise, it will fail," the advocate told the bench.

The urgent listing of the case was also cited last week.

In January, the Supreme Court had stayed for three weeks the order of directing winding up proceedings against SpiceJet after the airline claimed that it is 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 had stayed the winding up order of SpiceJet for three weeks to await the measures taken by the airlines' management to resolve the dispute.

The airline had said that it will attempt to resolve the issues with Credit Suisse in three weeks.

SpiceJet Limited had earlier approached the apex court against the Madras High Court order of the winding up of the company.

As per Switzerland-based company Credit Suisse AG, SpiceJet had failed to honour its commitment to pay the bills for over USD 24 million raised by the Swiss company for maintenance, repairing and overhauling of the aircraft engines and components.

The division bench of the Madras High Court had upheld the December 6 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 USD 5 million, 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 moved the division bench against the single judge order.

The winding up petition before High Court's single judge was moved by a Credit Suisse AG claiming that SpiceJet was indebted to it for more than USD 24 million and alleged that the private carrier is unable to pay the debts owed to the firm.

01/06/22 ANI/Business Standard

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