SpiceJet tells SC matter with Credit Suisse settled; seeks urgent hearing against winding up order

New Delhi [India], June 1 : Private airlines company SpiceJet Limited on Wednesday told the Supreme Court that it has reached a settlement over its outstanding dues with Swiss company Credit Suisse and sought an urgent listing of its plea challenging the winding order passed by the Madras High Court.
The plea for urgent listing of the case was mentioned by the counsel appearing for SpiceJet before a vacation bench headed by Justice Ajay Rastogi, which agreed to list the matter on Friday.
"There are obligations which have to be complied. It's only to take the settlement on record. Otherwise, it will fail," the advocate told the bench.
The urgent listing of the case was also cited last week.
In January, the Supreme Court had stayed for three weeks the order of directing winding up proceedings against SpiceJet after the airline claimed that it is looking to settle the dispute over its outstanding dues with Swiss company Credit Suisse.
A Bench of Chief Justice of India NV Ramana, Justices AS Bopanna and Hima Kohli had stayed the winding up order of SpiceJet for three weeks to await the measures taken by the airlines' management to resolve the dispute.
The airline had said that it will attempt to resolve the issues with Credit Suisse in three weeks.
SpiceJet Limited had earlier approached the apex court against the Madras High Court order of the winding up of the company.
As per Switzerland-based company Credit Suisse AG, SpiceJet had failed to honour its commitment to pay the bills for over USD 24 million raised by the Swiss company for maintenance, repairing and overhauling of the aircraft engines and components.
The division bench of the Madras High Court had upheld the December 6 verdict of a single judge ordering the winding up of SpiceJet Limited and directing the official liquidator attached to the High Court to take over the assets of the company.
The single judge had suspended the operation of his order for a limited period with a direction to the company to remit USD 5 million, as a condition precedent to avail the interim relief.
The division bench by its order on January 11, however, extended the operation of the interim stay granted by the single judge, till January 28 to enable the airliner to prefer an appeal before the Supreme Court. SpiceJet moved the division bench against the single judge order.
The winding up petition before High Court's single judge was moved by a Credit Suisse AG claiming that SpiceJet was indebted to it for more than USD 24 million and alleged that the private carrier is unable to pay the debts owed to the firm.
According to the Credit Suisse AG, a stock corporation registered under the laws of Switzerland, SpiceJet had availed services of SR Technics, Switzerland, for maintenance, repair and overhauling of aircraft engines, modules, components, assemblies and parts which are mandatory for its operations.
On November 24, 2011, ten year contract was signed between the SR Technica and SpiceJet. Meanwhile, SR Technics entered into a financing agreement with Credit Suisse AG on September 26, 2012 and assigned all its present and future rights to receive payments to Credit Suisse.
Credit Suisse said it made repeated requests to SpiceJet to make payments under the various invoices and since SpiceJet did not honour its commitment, the Swiss company issued statutory notice under the Companies Act.
As the notice did not evoke any response, Credit Suisse said it moved the plea for liquidation and winding up of SpiceJet.
The company had prayed before the single judge for winding up of SpiceJet under the provisions of the Companies Act, 1956 and appoint the Official Liquidator of the High Court as the Liquidator of SpiceJet with all powers under Section 448 of the Companies Act to take charge of its assets, properties, stock in trade and books of accounts.