New Delhi: The Supreme Court on Friday stayed the winding-up order of SpiceJet for three weeks as the private airline stated that they are trying to resolve the issues with Credit Suisse AG. The matter relates to non-payment of $24 million to the Switzerland-based stock corporation.
Coming down heavily on the airlines, the Supreme Court said, “If you don’t want to run the airline, we will declare you insolvent. This is not the way to run an airline.”
Senior Advocate Harish Salve appearing for SpiceJet said,”We are asking for three weeks. We are trying to work out something.”
“Senior counsel Harish Salve sought three weeks for trying to resolve the matter and Mr K V Vishwanathan (appearing for the Swiss firm) also agreed to the adjournment. Meanwhile, the high court order stays for three weeks,” the Supreme Court bench ordered.
Though, the bench headed by Chief Justice of India N V Ramana pulled up the airline over the delay in response and asked, “You want to run or close the shop? This isn’t the way you run your airlines. If you don’t want to run, we will declare it insolvent.”
“The Supreme Court has today stayed the Madras High Court order against SpiceJet to facilitate settlement between the airline and Credit Suisse. Both parties are already in advanced discussions to settle the matter,” SpiceJet said in a statement.
The airline had earlier moved the top court against the Madras HC order which ordered winding-up of SpiceJet and liquidation process for default in paying dues of Credit Suisse.
Gurgaon-based SpiceJet’s losses in the second quarter of the current financial year grew to more than ₹ 561 crore from a year-ago period.
The airline’s stock is down by about 30 per cent in the past year. The negative net worth of the airline is close to what it was in 2014 when it was about to shut operations.
The court will now hear the matter after three weeks.