'This Isn't The Way To Run Airlines': Supreme Court To SpiceJet While Staying Publication Of Madras HC's Winding Up Order

The Supreme Court on Friday stayed the publication of the winding-up order passed by the Madras High Court against airline company SpiceJet Ltd. However, a bench led by the Chief Justice of India also made certain critical remarks against SpiceJet.

Senior Advocate Harish Salve, appearing for SpiceJet, sought for three weeks time saying that they are working out things with the creditor Credit Suisse AG, a Switzerland based Stock Corporation, on whose petition the High Court passed the order.

Senior Advocate KV Vishwanathan, appearing for the creditor, told the bench, "They are saying they want to make a serious offer. They can have three weeks. What's being offered now is not even worth mentioning".

"Mr.Salve, what is this?", CJI asked.

"Mr.Salve you want to run or close the show? Better why don't you produce your financial status? This isn't the way you can run your airlines. What is your contribution? It's a serious matter, if they (SpiceJet) don't want to run airlines we'll declare insolvent & go for liquidation", CJI Ramana told Salve.

The bench, also comprising Justice AS Bopanna and Justice Hima Kohli, passed the following order :

"Senior Counsel for petitioner Seeks time to resolve matter. Mr Vishwanathan agrees to adjournment. Adjourned for 3 weeks, publication order stayed for 3 weeks"

It was on December 7, 2021, that a single bench of the Madras High Court ordered the winding up of Spicejet Ltd on a company petition filed by Credit Suisse AG, a Switzerland based Stock Corporation and a creditor, who alleged inability on the part of respondent Airlines to pay the debts owed to the former. The single bench of Justice R. Subramanian directed the Official Liquidator to take over the company assets. The order was however kept in abeyance for two weeks.

Later, SpiceJet appealed to the Division Bench. On January 11, a Division Bench of Sathi Kumar Sukumara Kurup and Paresh Upadhyay dismissed the appeal of SpiceJet. The Division Bench also put the order in abeyance till January 28.

On January 25, Senior Advocate Mukul Rohatgi had mentioned before the CJI the special leave petition filed by SpiceJet for urgent listing. Accordingly, the matter was listed today.

Case Title: SpiceJet vs Credit Suisse AG

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