SC stays Madras HC order admitting winding up petition against SpiceJet by company court

Tribune News Service

New Delhi, January 28

The Supreme Court on Friday stayed for three weeks the Madras High Court that had upheld an order of company court admitting the winding up petition against SpiceJet and had directed the official liquidator to take over the assets of the beleaguered airline.

A Bench led by Chief Justice of India NV Ramana granted three weeks to SpiceJet to resolve its financial dispute with Swiss firm Credit Suisse AG after senior advocate Harish Salve submitted on behalf of SpiceJet that the airline would try to resolve the issue with the Swiss firm.

On behalf of the Swiss firm, senior counsel KV Vishwanathan agreed to the proposal.

Credit Suisse had moved a winding up petition before a company court claiming that SpiceJet took a debt of more than 24 million dollars. After the company court admitted the winding up petition, SpiceJet moved the Madras High Court which refused to entertain its appeal, forcing the airline to approach the top court.

During the hearing, the Bench said, “If you (SpiceJet) don’t want to run the airlines, we will declare you insolvent. This is not the way to run an airline.”

“We will come to something, we have something in mind. Please stay the high court’s order,” Salve replied.

Following this, the Bench adjourned the matter for three weeks and also stayed the Madras High Court order.

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