SpiceJet to appeal Madras High Court HC winding up order

The court rejected the airline’s contention that SR Technics did not possess DGCA’s approval from 2009 to 2015, saying the airline had availed of the services.

Published: 08th December 2021 05:36 AM  |   Last Updated: 08th December 2021 05:36 AM   |  A+A-

SpiceJet

SpiceJet flight (Photo | PTI)

By Express News Service

CHENNAI / NEW DELHI: A day after the Madras High Court ordered the winding up of SpiceJet over its failure to make payments to a Swiss maintenance, repair and overhaul (MRO) service provider, the private carrier said on Tuesday that it was planning to appeal. 

SpiceJet owes around $24 million to Zurich-based SR Technics, with which it has a 10-year agreement to avail MRO service. On Monday, the single-judge bench of Justice R Subramanian allowed the petition by Credit Suisse AG, which had been assigned the right to receive payments due to SR Technics and ordered that the airline be wound up. The operation of the verdict was, however, stayed for three weeks following a plea by the airline on condition that SpiceJet deposit $5 million with the court in two weeks.

The court rejected the airline’s contention that SR Technics did not possess DGCA’s approval from 2009 to 2015, saying the airline had availed of the services.SpiceJet said the Swiss firm made the “fraudulent misrepresentation” of having DGCA approval. This, the company said, is contrary to Indian and other applicable laws and therefore, makes the entire agreement infructuous. “Since the agreement falls and is void, Credit Suisse as an assignee does not and cannot have any claim against the Company,” SpiceJet said. 



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp