Supreme Court stays SpiceJet winding up order for three weeks, but pulls up the airline

Representational image.

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

live

• bselive
• nselive

Volume

Todays L/H

More

×

The Supreme Court (SC), on January 28, stayed the publication of the winding-up order for SpiceJet for a period of three weeks on the request made by litigating parties.

SpiceJet, which is embroiled in a tussle with Credit Suisse, had approached the Supreme Court, seeking relief against the winding up order of the Madras High Court. The high court had stayed the operation of the order for a brief period allowing the airline to exercise its legal remedy of an appeal.

Today, the counsel for SpiceJet informed an apex court bench headed by Chief Justice of India, and comprising NV Ramana, that the airline is trying to “work something out” and as such urged the court to adjourn the hearing for a period of three weeks.

Akasa, Jet Airways 2.0 may add to the woes of Indian aviation industry

While Credit Suisse was agreeable to the adjournment, the counsel for the financial institution told the court that the current offer over dues made by the airline is “not even worth mentioning”. Credit Suisse added that it is not opposed to the three-week adjournment “provided they (SpiceJet) stick to the timeline strictly.”

The bench expressed its displeasure with the airline’s conduct and the chief justice pulled up SpiceJet asking, “Do you want to run the show or close it?”

“Why don’t you produce your financial statements?” the bench asked SpiceJet. “This is not the way to run an airline… this is a serious matter. If they don’t want to run the airline then we will declare it insolvency and direct it for liquidation…”

Madras High Court dismisses SpiceJet's appeal against winding up order

Meanwhile, 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."

Senior Counsel Harish Salve representing the airline attempted to assuage the court and said that the airline just needs three weeks’ time to attempt to resolve the issue. With no opposition from Senior Advocate KV Vishwanathan, representing Credit Suisse, for the adjournment, the court had adjourned the case for a period of three weeks now.