SpiceJet, Swiss firm Credit Suisse AG tell Supreme Court that they have settled financial dispute

SpiceJet, Swiss firm Credit Suisse AG tell Supreme Court that they have settled financial dispute


According to the Swiss firm, SpiceJet had availed the services for maintenance, repairs.

New Delhi:

SpiceJet and Swiss firm Credit Suisse AG on Thursday informed the Supreme Court about the resolution of their financial dispute, which led to the withdrawal of an appeal by the low-cost airline against the Madras High Court’s decision, which held that due to alleged non-compliance It was ordered to be closed. Payment of amount due to Swiss firm.

“There is an agreement which has been reached as per the terms of consent on 23rd May, 2022. In view of this, both the parties are satisfied with the agreement and wish to withdraw the SLP (Special Leave Petition) filed by the petitioner.

“Accordingly, the application is allowed,” a bench of Chief Justice NV Ramana and Justice Hima Kohli and Justice CT Ravikumar said in the order.

It states that the parties have been instructed to abide by the terms of consent.

“It is noted that some amount was deposited in the Madras High Court in pursuance of the order of the Madras High Court. The parties are free to apply for release of funds,” the top court said.

The airline initially apprised the bench about the settlement of the dispute with the Swiss firm and said that the bank guarantee was given to the Madras High Court registrar as per the High Court order.

Now, as per the terms of settlement, the bank guarantee will have to be returned to the bank by issue, it said.

The apex court noted the submission and said that the parties concerned are free to approach the High Court for issue of bank guarantee.

On SpiceJet’s appeal, the bench had on January 28 stayed the publication of the winding up notice and the order directing the official liquidator attached to the Madras High Court to acquire the assets of the low-cost airline.

It had also asked SpiceJet to settle the financial dispute with the Swiss firm.

SpiceJet had moved the apex court against the January 11 order of a division bench of the Madras High Court, upholding the recent decision of a single judge.

The single-judge bench, hearing a plea by the Swiss firm, had ordered the winding up of SpiceJet and directed the official liquidator attached to the high court to acquire its assets.

Credit Suisse AG had alleged in a single-judge bench of the High Court that SpiceJet did not comply with its commitment to pay bills of over USD 24 million raised by it for maintenance, repair and overhauling of the aircraft’s engines and components. failed to do.

The company’s petition, filed by the Swiss firm, prayed for the winding up of SpiceJet under the provisions of the Companies Act, 1956 and the High Court to appoint the official liquidator as the liquidator of SpiceJet with all powers under Section 448 of the Companies Act Was. To take charge of your assets, assets, stock in business and books of accounts.

According to the Swiss firm, SpiceJet had availed the services of SR Technics, Switzerland for maintenance, repair and overhauling of the aircraft’s engines, modules, components, assemblies and parts, which were essential for its operation. A 10-year agreement was signed between SpiceJet and SR Technics on November 24, 2011 for such services. The terms of payment were also agreed upon.

(Except for the title, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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Indian Lekhak

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