An Indian court has dismissed SpiceJet's appeal against a liquidation order over USD24.1 million in unpaid debt to investment bank Credit Suisse, reports India’s Business Standard.
The Division Bench of the Madras High Court has, however, extended the order until January 28, 2022, to allow the low-cost carrier to lodge a further appeal before the Supreme Court.
In response to a request for comment from ch-aviation, an airline spokesperson said the company was examining the order and "would take appropriate remedial steps as per legal advice received".
The Madras High Court on December 6 ordered the winding up of the airline on a petition filed by Credit Suisse. As reported, SpiceJet stands accused of having failed to pay Swiss MRO firm SR Technics for the maintenance and repair of aircraft engines, modules, components, assemblies, and parts under a contract dated November 24, 2011. SR Technics had given Credit Suisse the authority to collect all payments from SpiceJet.
The order was subsequently stayed for three weeks following a plea by the airline and on the condition that it deposited USD5 million with the court within two weeks.
On January 5, the court had heard submissions and preliminary arguments by both parties. SpiceJet’s defence was that it had discovered midway through a 10-year contract with SR Technics that the company was not authorised by India’s Directorate General of Civil Aviation (DGCA) and had subsequently stopped paying the service provider. It also argued that the debts were not legally enforceable and as such, could not lead to the winding up of the airline.
