"You can't say you are Busy": Supreme Court as it gives SpiceJet reprieve

 

 A Court order to wind up SpiceJet was paused for 3 weeks by the Apex Court today as the private airline said it is trying to resolve issues with Credit Suisse AG. The case relates to the non-payment of $24 million (Rs 180 crore) to the Switzerland-based stock corporation.

"We are asking for three weeks. We are trying to work out something," said senior advocate Mukul Rohtagi, appearing for SpiceJet.

The SC bench said, "Senior counsel Harish Salve sought three weeks for trying to resolve the matter & Mr KV Vishwanathan (appearing for the Swiss firm) also agreed to the adjournment. Meanwhile, the high court order stays for three weeks".

The High Court of Madras had in Dec 2021 ordered SpiceJet to wind up & start liquidation for defaulting on payment of dues to Credit Suisse. The airline approached the Supreme Court against the order in Jan 2020.

The bench headed by Chief Justice of India NV Ramana pulled up the airline after Mr Vishwanathan (appearing for Credit Suisse) cited SpiceJet's offer as not "worth mentioning".

The Court said that "What is this? Do you want to run or close the shop ... you better produce your financial status. It is not the way to run your airlines. You cannot say that you are a busy airline & I do not want to pay anybody. You see this a serious matter. If you do not want to run the airline then we will declare that you are insolvent & go for the liquidation".

SpiceJet later said in a statement that the Supreme Court had stayed the Madras High Court order against SpiceJet to facilitate settlement between the airline & Credit Suisse. “Both parties are already in advanced discussions to settle the matter," the statement said.

Gurgaon-based SpiceJet's losses in the second quarter of the current financial year grew to more than ₹ 561 crore from a year-ago period.

The airline's stock is down by about 30% in the past year. The negative net worth of the airline is close to what it was in 2014 when it was about to shut operations.

(Only the headline and picture of this report may have been reworked by the LatestLaws staff; the rest of the content is auto-generated from a syndicated feed.)

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