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Madras HC dismisses SpiceJet's appeal against order to wind up

Airline is likely to appeal in the Supreme Court

spicejet pti Representational image

The Madras High Court on Tuesday dismissed an appeal from SpiceJet against the order of a single judge directing the winding up of the company. SpiceJet is likely to appeal in the Supreme Court against the decision.

Justice R. Subramanian of the Madras High Court had passed the order on December 6 to wind up SpiceJet and directed the official liquidator to take over its assets in a case related to non-payment of around $24.01 million to Credit Suisse.

The order had been kept in abeyance from the time it was passed.

The division bench of Justice Paresh Upadhyay and Justice Sathi Kumar Sukumara Kurup rejected SpiceJet's appeal against the December 6 order, but kept the order suspended until January 28 to allow the carrier to appeal in the Supreme Court.

Credit Suisse had filed the case against SpiceJet for failure to pay for services of SR Technics, Switzerland for maintenance, repair and overhaul of aircraft parts. SpiceJet and SR Technics had signed a 10-year contract in November 2011. In 2012, SR Technics entered into a financing agreement with Credit Suisse, assigning the latter the rights to receive payments.

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