SC agrees to hear SpiceJet's Plea
The Supreme Court of India (SC) agreed to hear a plea filed by SpiceJet Limited on Tuesday against the order from Madras High Court to wind up the company.
A Bench comprising of Chief Justice of India (CJI) NV Ramana, Justcies Hima Kohli and AS Bopanna today agreed to consider the plea of SpiceJet following senior advocate Mukul Rohatgi, who is representing the company, sought the urgent hearing of the matter, reported ANI.
Requesting the Bench to hear the matter on urgent basis, Rohatgi said, “This matter is regarding the winding up of airline called SpiceJet. The protection is till Friday, please list it else, the company will fold up”.
SpiceJet had reportedly failed to pay the bills for over $24 million raised by Credit Suisse AG, a stock corporation registrated under the laws of Switzerland, for the maintenance, reparing and overhauling of aircrafts engines and components.
The division bench of the Madras High Court had recently upheld the December 6 verdict of a single judge who ordered the winding up of the company and directed the official liquidator attached to the High Court to take over the assets of the company.
However, in a relief, the single judge had suspended the operation of the order for a limited period with a direction to the company to remit $5 million to avail it.
By its order on January 11, the division bench extended the operation of the interim stay granted by the single judge, the January 28 to enable the airline company to appeal to the SC. SpiceJet had moved the division bench against the single judge order.
Notably, Switzerland based Credit Suisse AG had petitioned the High Court’s single judge claiming that SpiceJet was in debt to the tune of $24 million and had alleged that the private carrier was unable to pay the firm back.
SpiceJet had contracted SR Technics of Switzerland for the repairing, maintenance and overhaul of aircraft engines, modules, components, assemblies and parts which were mandatory for its operations, according to Credit Suisse AG. A 10 year contract was signed on November 24, 2011 between SR Technica and SpiceJet.
It said, "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 Swiss. Thereafter, Credit Swiss-made repeated requests to SpiceJet to make payments under the various invoices. Since SpiceJet did not honour its commitment, the Credit Swiss issued statutory notice under the Companies Act."
As they did not receive any response to the notice, Credit Swiss moved the plea for liquidation and winding up of SpiceJet.
The company pleaded with the single judge to order the winding up of SpiceJet under the provisions of the Companies Act, 1956 and the appointment of the Official Liquidator of the High Court as the Liquidator of SpiceJet with the powers under Section 448 of the Companies Act to take charge of the assets, properties, stock in trade and books of accounts.
