SpiceJet knocks on Supreme Court's door
The airline’s plea was rejected by the Madras High Court
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SpiceJet knocks on Supreme Court's door The airline's plea was rejected by the Madras High Court SpiceJet, India's low-cost airline has approached the Supreme Court against a Madras High Court judgment. The high court had refused to interfere with an order of the company court admitting a winding-up petition against the airline. Appearing for SpiceJet, senior counsel Mukul...
SpiceJet knocks on Supreme Court's door
The airline's plea was rejected by the Madras High Court
SpiceJet, India's low-cost airline has approached the Supreme Court against a Madras High Court judgment. The high court had refused to interfere with an order of the company court admitting a winding-up petition against the airline.
Appearing for SpiceJet, senior counsel Mukul Rohatgi brought the matter before the Chief Justice of India, NV Ramana. He sought urgent listing of the matter stating that the company would go into liquidation if the matter was not heard on priority.
On the counsel's plea, "Else, the company will fold up", Justice Rohatgi responded, "We shall look into this."
Credit Suisse had moved the winding-up petition before the company court. It informed that a notice was sent to SpiceJet, but it elicited no response. It claimed that SpiceJet was indebted to it for more than $24 million.
The issue arose when the airlines availed an engine maintenance facility from SR Technics, whose payment it wished to defer. For this purpose, it sought the services of Credit Suisse.
Credit Suisse made payments to SR Technics on behalf of SpiceJet. Non-payment of the amount to Credit Suisse led to the winding-up petition.
After the company court had admitted the petition, SpiceJet approached the Madras High Court. However, a bench of Justice Paresh Upadhyay and Justice Sathi Kumar Sukumara Kurup dismissed its appeal.