Supreme Court grants 3 weeks to SpiceJet to settle financial issues with Swiss firm
SpiceJet previously moved the apex court against the Madras High Court order that directed the winding-up of SpiceJet and the liquidation process due to Credit Suisse's failure to pay its debts.
FollowThe Supreme Court stayed the winding-up order of SpiceJet for three weeks as the airline cited they are trying to resolve the issues with Credit Suisse AG on Friday. The case involves the non-payment of $24 million to the Swiss-based stock corporation.Â
Senior Advocate Mukul Rohtagi representing SpiceJet, said they are asking for three weeks and trying to work out something.Â
The Supreme Court Bench ordered, saying senior counsel Harish Salve sought three weeks for trying to resolve the matter and KV Vishwanathan (appearing for the Swiss firm) agreed to the adjournment.Â
Coming down heavily on the airline, the Supreme Court questioned, do you wish to run or close the shop? This is not the way how you run the airlines. If you don't desire to run, we will declare it insolvent.Â
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A Bench led by Chief Justice NV Ramana took note of senior advocate Harish Salve's submissions that SpiceJet would try to resolve the issue with the Swiss firm.
SpiceJet previously moved to the apex court against the Madras High Court order that directed the winding-up of SpiceJet and the liquidation process due to Credit Suisse's failure to pay its debts.
Credit Suisse AG had petitioned the High Court single-judge bench, alleging that SpiceJet had failed to honour its commitment to pay bills totalling more than USD 24 million (one million equals Rs 10 lakhs) raised for maintenance, repair, and overhauling of aircraft engines and components.
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SpiceJet reported losses of more than Rs 561 crores in the second quarter of the current fiscal year, up from Rs 561 crores the previous year.
The airline's stock has dropped by about 30% in the last year. The airline's negative net worth is similar to back in 2014 when it was about to cease operations. The case will now be heard in three weeks by the court.
