The troubles of the airline company SpiceJet do not seem to be diminishing. The Supreme Court will hear on January 28 in the case of dues of Rs 180 crore on this airline. SpiceJet owes Rs 180 crore to financial company Credit Suisse AG. If the Supreme Court decides against SpiceJet in this matter, then the airline company will be in trouble. How is this due to SpiceJet due to Credit Suisse, how old is this matter, how did this matter reach the Supreme Court? Let us try to know the answers to these questions.
This issue is almost a decade old. In fact, in 2011, SpiceJet had given the work of maintenance of its aircraft and their engines to the Swiss company SR Technics. SpiceJet could not pay the fixed amount for this work. In 2012, an agreement was reached between Credit Suisse and SR Technics. Under this, SR Technics has given the right to get the dues from SpiceJet to Credit Suisse. This is how Credit Suisse entered the case.
In 2015, Credit Suisse filed a petition in the Madras High Court against SpiceJet for persistent delay in payment of dues. He sought the closure of SpiceJet in the petition. Then SpiceJet’s lawyers tried their best to get Credit Suisse’s petition dismissed. The airline said that the bill of exchange prepared by SR Technics had several technical flaws. Therefore it cannot be implemented in India. SpiceJet also said that Credit Suisse is not a creditor. And since there is no contractual relationship between the debtor and the creditor, there is no ground for winding-up of SpiceJet’s petition.
SpiceJet also argued against SR Credit Suisse’s plea that SR Techniques is not registered with the Directorate General of Civil Aviation (DGCA), the regulator of airline companies in India. However, a judge of the Madras High Court rejected SpiceJet’s arguments. He ruled in favor of Credit Suisse. He also said that SpiceJet continues to hire SR Technics. So she can’t change her stand now. The judge gave the right to confiscate the assets of SpiceJet to an official liquidator.
SpiceJet challenged the order of the Madras High Court judge last month. The judge then stayed the execution of his order for three weeks so that SpiceJet could appeal against it. Then, a division bench of the Madras High Court also dismissed SpiceJet’s appeal two weeks ago, but extended the stay on the decision. SpiceJet then approached the Supreme Court. Now on the 28th of this month, the hearing in this matter will be held in the highest court of the country.
The Corona epidemic has caused the most damage to the airlines. The lockdown and restrictions on economic activities have had a direct impact on the business of airlines companies. SpiceJet’s loss widened to Rs 561 crore in the second quarter of this fiscal. SpiceJet’s stock has fallen more than 30 per cent in a year. On Monday, the company’s stock closed at Rs 60.65, down more than 4 per cent.
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