NEW DELHI: The Supreme Court on Friday gave private carrier SpiceJet three weeks to resolve its financial dispute with Swiss firm Credit Suisse. However, an apex court bench, headed by Chief Justice of India NV Ramana, showed displeasure on the way the airline has conducted in the case and even said about declaring it insolvent.
“What is this? Do you want to run or close the shop ... you better produce your financial status. It is not the way to run your airlines. You cannot say that you are a busy airline and I do not want to pay anybody. You see this as serious matter. If you do not want to run the airline then we will declare that you are insolvent and go for the liquidation,” the top court said to lawyer Harish Salve, who was representing SpiceJet.
Salve sought a three-week adjournment of the case. He added that they are working out something and they will make a serious offer soon. Senior advocate KV Vishwanathan, appearing for the Swiss firm, however, said that the present offer made by SpiceJet is “not even worth mentioning”. The case relates to the non-payment of $24 m (Rs 180 crore) by SpiceJet to the Swiss firm.
“Senior counsel Harish Salve sought three weeks’ time for trying to resolve the matter and Mr. KV Vishwanathan (appearing for the Swiss firm) also agreed to the adjournment. Meanwhile, the high court order is stayed for three weeks,” the bench, also comprising justices AS Bopanna and Hima Kohli, ordered.
Earlier the Madras High Court had permitted winding-up petition and directed the official liquidator to take over the assets of the low-cost airline. This forced SpiceJet to rush to the apex court. A SpiceJet spokesperson said, “The SC has today stayed the Madras High Court order against SpiceJet to facilitate settlement between SpiceJet and Credit Suisse. Both parties are already in advanced discussions to settle the matter.”