The Supreme Court has on January 28 stayed the order of the closure of SpiceJet for a period of three weeks. SpiceJet, embroiled in a dispute with Credit Suisse, had approached the Supreme Court seeking relief against the Madras High Court’s order to wind up the airline. It had stayed the execution of the order, allowing the airline to appeal in a higher court.
Today, SpiceJet’s counsel informed the apex court bench headed by Chief Justice of India, NV Ramana that the airline was trying to “work something out”. and therefore urged the court to adjourn the hearing for a period of three weeks.
While Credit Suisse also appeared to have agreed to the adjournment, Credit Suisse’s counsel told the court that the current proposal made by the airline on the dues “is not even worth mentioning” (“not even worth mentioning”). Credit Suisse said we do not oppose the 3-week moratorium “provided they (SpiceJet) strictly adhere to the timeline.”
The bench expressed displeasure over the conduct of the airline and the Chief Justice pulled up SpiceJet, asking, “Do you want to run the airline or shut it down?”
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“Why don’t you submit your financial statements?” The bench asked SpiceJet. “This is not the way to run an airline and it is a serious matter. If they don’t want to run the airline, we will declare it bankrupt and direct its liquidation.”
Meanwhile, a SpiceJet spokesperson said, “The Supreme Court has today stayed the Madras High Court order against SpiceJet for entering into a settlement between SpiceJet and Credit Suisse. Both the parties are already at high level to resolve the matter.” are discussing.”
Senior Counsel Harish Salve, representing the airline, tried to reassure the court and said that the airline needs only three weeks to resolve the issue. Senior Advocate KV Vishwanathan representing Credit Suisse
Let us tell you that the dispute between SpiceJet and Credit Suisse is almost a decade old. In fact, SpiceJet had given the work of maintenance of its aircraft and engines to the Swiss company SR Technics in 2011. But SpiceJet could not pay the fixed amount for this work. Later in 2012, an agreement was signed between Credit Suisse and SR Technics. Under this, SR Techniques was given the right to collect dues from SpiceJet to Credit Suisse. After which the real fight was seen between the two companies.
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