Supreme Court Grants 3-week Relief to SpiceJet, Asks if Airline Wants to Run Show or Close Shop

Jan. 28—The Supreme Court on Friday asked low-cost airline SpiceJet if it wanted to run the show or close shop while granting its three weeks of relief to resolve its financial dispute with Swiss firm Credit Suisse AG.

An apex court bench, headed by Chief Justice of India NV Ramana, further stayed the operation of the Madras high court verdict permitting the winding-up petition and directing the official liquidator to take over the assets of the airline.

While taking note of the submissions of senior advocate Harish Salve that SpiceJet would try to resolve the issue with the Swiss firm, the CJI said, "It is a serious matter. if they ( SpiceJet) don't want to run the airlines, we will declare (it) insolvent and go for liquidation."

"Senior counsel Harish Salve sought three weeks' time for trying to resolve the matter and Mr K VVishwanathan (appearing for the Swiss firm) also agreed to the adjournment. Meanwhile, the high court order is stayed for three weeks," said the bench, also comprising justices AS Bopanna and Hima Kohli.

SpiceJet had moved the top court against a 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 $24 million raised by it towards maintenance, repairing, and overhauling of the aircraft engines and components.

(With inputs from agencies)

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