Supreme Court grants three week Stay on Winding Up Petition against SpiceJet

Ambika bhardwaj

Published On: January 28, 2022 at 16:11 IST

On Friday, the Supreme Court in the Case of SpiceJet v. Credit Suisse gave Interim Relief to Airline Company, SpiceJet in regard to the Winding Up Petition against it.

Earlier, an Order of Company Court which admitted the Winding Up Petition against the Airline was upheld by a Judgement of Madras High Court. A three week Stay on the Judgement was given by a Bench led by Chief Justice of India NV Ramana.

Some serious comments were made by the Bench against the Airline.

CJI Ramana said “this is not the right way of running an Airline, you will be announced as Insolvent”.

Senior Counsel who appeared for SpiceJet stated that they do have something in their mind and soon something will be decided.

The Case has been Adjourned for three weeks and a Stay is also given on Madras High Court Judgement.

The Madras High Court declined to intervene in a Company Court Order admitting a Winding Up Petition against the Airline.

Credit Suisse moved the Petition before Company Court, claiming that SpiceJet owed it more than $24 million, after receiving no response to the Notice.

SpiceJet needed an engine maintenance facility from SR Technics, whose payment it wanted to defer, for which it sought the services of Credit Suisse.

Credit Suisee made payments to SR Technics on SpiceJet’s behalf. The failure to pay this amount to Credit Suisse resulted in the Winding Up Petition.

SpiceJet approached the Madras High Court through an Appeal, after the Company Court admitted the Petition.

However, it was dismissed by a Bench of Justices Paresh Upadhyay and Sathi Kumar Sukumara Kurup.

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