Madras HC allows winding-up petition against SpiceJet; airline has 3 weeks to challenge order – Times of India

NEW DELHI: The Madras high court has allowed Credit Suisse AG’s winding up petition against SpiceJet for alleged default of $20 million payment.
The court also directed the official liquidator to take over the assets of SpiceJet.
The operation of the order has been stayed so that the airline can challenge this single bench judgment before a division bench.
In a regulatory filing on Tuesday, SpiceJet said: “… the Madras high court vide its order dated December 6, 2021 has stayed the earlier order of winding up and appointment of official liquidator for a period of three weeks, subject to the condition that the company deposits the amount equivalent to $5 million within a period of two weeks.”
In November, 2011, SpiceJet and SRT Technics had signed an agreement for provision of engine maintenance services.
“Credit Suisse AG initiated the company petition as a purported assignee of SRT claiming non-payment of amounts aggregating to $24 million under the agreement…. The Madras high court….. rejected the company’s defence and ordered winding up of (SpiceJet) and directed the official liquidator to take over the assets of the company. However, the Madras high court vide its order of December 6, 2021, was pleased to stay the operation of the order for a period of three weeks, subject to the condition that the Company deposits the amount equivalent to $5 million within a period of two weeks,” the SpiceJet filing says.
“The company is examining the order and shall initiate appropriate remedial steps including preferring an appeal before the appellate jurisdiction within the time frame allowed by the Madras High Court,” it added.