Supreme Court stays SpiceJet’s winding up order for 3 weeks


The case pertains to non-payment of $24 million to Switzerland-based Stock Corporation.

New Delhi: The Supreme Court on Friday stayed the winding up order of SpiceJet for three weeks as the private airline said it was trying to resolve issues with Credit Suisse AG. The case pertains to non-payment of $24 million to Switzerland-based Stock Corporation.

Senior advocate Mukul Rohatgi, appearing for SpiceJet, said, “We are seeking three weeks’ time. We are trying to figure something out.

The Supreme Court Bench ordered, “Senior Advocate Harish Salve sought three weeks’ time to try to resolve the matter and Shri KV Viswanathan (appearing for the Swiss firm) also agreed for the adjournment. In the meantime, The High Court order lasts for three weeks.”

However, a bench headed by Chief Justice of India NV Ramana pulled up the airline over the delay and asked, “You want to run or shut down shop? This is not the way your airlines run. If you don’t want to run, we will do it.” Will declare bankruptcy.”

SpiceJet had earlier moved the apex court against the Madras High Court order ordering closure of SpiceJet and the liquidation process for defaulting on credit Suisse dues.

Gurgaon-based SpiceJet’s loss widened to over Rs 561 crore in the second quarter of the current fiscal from the year-ago period.

The airline’s stock has fallen nearly 30 per cent in the past one year. The negative net worth of the airline is closer to what it was in 2014, when it was about to cease operations.

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