SC grants three weeks to SpiceJet to resolve financial issues with Swiss firm

The Supreme Court on Friday granted three weeks’ time to SpiceJet to resolve its financial dispute with Swiss firm Credit Suisse AG, and stayed the operation of the Madras High Court verdict permitting winding-up petition and directing the official liquidator to take over the assets of the low-cost airline.

A bench headed by Chief Justice N V Ramana took note of the submissions of senior advocate Harish Salve that SpiceJet would try to resolve the issue with the Swiss firm.

“Senior counsel Harish Salve sought three weeks’ time for trying to resolve the matter and Mr K V Vishwanathan (appearing for the Swiss firm) also agreed to the adjournment. Meanwhile, the high court order is stayed for three weeks,” the bench, also comprising justices A S Bopanna and Hima Kohli, ordered.

SpiceJet has rushed to the top court against the January 11 order of a division bench of the high court upholding a recent verdict of a single judge bench ordering its winding up and directing the official liquidator attached to the high court to take over the assets.

Credit Suisse AG had moved the single-judge bench of the high court alleging that SpiceJet failed to honour its commitment to pay the bills for over USD 24 million (one million is equal to Rs 10 lakhs) raised by it towards maintenance, repairing, and overhauling of the aircraft engines and components.