The Madras High Court on Monday ordered the liquidation of SpiceJet for non-payment of $ 24 million to Credit Suisse AG, a Zurich-based company. The court ordered the official liquidator to take over the assets of the carrier. However, after making the order, the judge stayed his own order for all subsequent proceedings for three weeks. This is subject to the condition that the company deposits the amount equivalent to $ 5 million within two weeks.
V Ramakrishnan, Appearing Senior Counsel SpiceJet requested a stay of enforcement of the order, for a period of two weeks to allow the Respondent to file an appeal.
An agreement for the performance of certain services for a period of 10 years was concluded between the Respondent and SR Technics in November 2011. SR Technics had prepared invoices and the Respondent had issued seven bills of exchange for the amounts due in under invoices. The Respondent acknowledges the debts from time to time by issuing a Certificate of Acceptance for the Bills of Exchange, which would imply that the Respondent had not disputed the accuracy of the claim made in the invoices.
The petitioner – Credit Suisse AG – entered into a financing agreement in September 2012 with SR Technics and under a transaction agreement, and SR Technics ceded all of its current and future rights to receive payments under the agreement to the petitioner.
“I am therefore of the opinion that this petition from the company should be allowed and that the respondent company should be liquidated. The official liquidator is responsible for taking over the assets of the respondent company. Consequently, the various related petitions are closed. No charge in this petition, ”the College said.
“Considering the request [of Counsel Ramakrishnan], there will be an order staying all subsequent proceedings under this order, for a period of three weeks, subject to the condition that the Respondent deposit the amount equivalent to $ 5 million to the credit of CPNo.363 of 2015 within two weeks of today, ”the judge said in a separate order.