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“This is not the way to run an airline, we will declare you insolvent:” Supreme Court to SpiceJet

The winding up petition before company court was moved by Credit Suisse, which claimed that SpiceJet was indebted to it for more than $24 million. On receiving no response on sending a notice regarding the same, the creditor had moved the company court.

The issue arose when the airlines availed an engine maintenance facility from SR Technics, whose payment it wished to defer. For this purpose, it sought the services of Credit Suisse.

Credit Suisee made payments to SR Technics on behalf of SpiceJet. Non-payment of this amount to Credit Suisse led to the winding up petition.

After the company court admitted the petition, SpiceJet approached the Madras High Court in appeal.

However, a Bench of Justices Paresh Upadhyay and Sathi Kumar Sukumara Kurup had dismissed the same prompting the present appeal before the apex court.

Read more on Madras High Court judgment here.

Source: Barandbench

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