The Madras High Court has stayed SpiceJet's earlier order of winding up the airline and will soon initiate ''appropriate remedial steps including preferring an appeal'' against the order before a higher bench, the company said on Tuesday.
''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 defense and ordered winding up of the company and directed the official liquidator to take over the assets of the company,'' SpiceJet noted.
Madras HC order
During the same day, the Madras High Court has directed the private carrier SpiceJet Limited to wind up its operations after the airline failed to make payment of $24.01 million to a Swiss Company SR Technics over unpaid dues.
The airline said the court has stayed the order for a period of three weeks, subject to the condition that it deposits the amount equivalent to $5 million within two weeks. SpiceJet said it shall initiate appropriate remedial steps, including preferring an appeal.
The claimed non-payment by Credit Suisse AG ''as a purported assignee'' of SRT Technics, amounts to $24.01 million under the agreement, SpiceJet said.
However, on the same day, the Madras High Court issued another order wherein it stayed its previous order and gave SpiceJet ''a period of three weeks, subject to the condition that the company deposits the amount equivalent to $5 million within a period of two weeks.''
''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 a favorable 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.
(With inputs from agencies)
