SpiceJet says Madras High Court has stayed earlier order of winding up

In a filing to BSE, the budget carrier said the Madras High Court had on Monday issued an order of “winding up SpiceJet and appointment of official liquidator” in a case filed by Credit Suisse claiming non-payment of $ 24.01 mn dues to engine maintenance services firm SRT Technics.

It said, “the Madras High Court through its order dated December 6, 2021 has stayed the earlier order of winding up and appointment of official liquidator for a period of three weeks, subject to the condition that the Company deposits the amount equivalent to $5 mn within a period of two weeks.” “The Madras HC despite holding that SRT did not have a valid authorization from DGCA to carry out engine maintenance during the currency of the agreement rejected the company’s defence and ordered winding up of the company and directed the official liquidator to take over the assets of the company,” SpiceJet noted.

“The Company is examining the order and shall initiate appropriate remedial steps including preferring an appeal before the appellate jurisdiction within the time frame allowed by the Madras High Court,” SpiceJet noted. The carrier further said it has a good case on merits and was hopeful of having favourable outcome in the appeal.

SpiceJet reported a net loss of Rs 934.8 crore and Rs 998.3 crore in 2019-20 and 2020-21, respectively.

It had reported a net loss of Rs 729 crore for the quarter ending June 2021 as its flight operations were affected due to the second wave of the COVID-19 pandemic.