Madras High Court’s division bench rejected SpiceJet’s appeal against a single-judge bench order for winding up the company due to non-payment of $24 million to SR Technics, a maintenance and repair company.
On 6 December 2021, Madras High Court ordered the winding up of SpiceJet on a petition filed by Credit Suisse, to whom SR Technics had given the right to collect all payments. The court also directed an official liquidator to take over the assets of the airline. The order was subsequently stayed for three weeks following a plea by the airline, on the condition that SpiceJet deposits $5 million with the court within two weeks.
SpiceJet appealed against the order on the grounds that the company after entering into an agreement with the SR Technics for a period of 10 years in 2011, midway, it discovered that the aircraft maintenance company did not have a valid authorisation from the Director General of Civil Aviation between January 1, 2009 and May 18, 2015.
The High Court turned down the appeal by SpiceJet against the order by the single-judge bench to wind up its operations. However, a division bench of the court comprising judges Sathi Kumar Sukumara Kurup and Paresh Upadhyay, extended a stay order on the judgement till 28 January, allowing SpiceJet to approach the Supreme Court.