Settled winding-up case with Credit Suisse, SpiceJet tells SC

THE MADRAS HIGH COURT, IN DECEMBER, HAD ORDERED WINDING UP OF THE PASSENGER AIRLINE

SpiceJet Ltd has settled the windingup case with Credit Suisse, the airline's lawyer Mukul Rohatgi told the Supreme Court on Thursday.

The Madras High Court, in December, had ordered winding up of the passenger airline. The apex court had put the order on hold in January and asked the company to settle the matter with Credit Suisse.

Credit Suisse had filed a petition under the Companies Act seeking the winding up of SpiceJet after the airline failed to honour some invoices the former raised in 2013.

Today, Rohatgi informed the court about the settlement during arguments in another case that involves the airline and its former promoter

Credit Suisse had filed a petition under the Companies Act seeking the winding up of SpiceJet after the airline failed to honour some invoices the former raised in 2013.

Kalanithi Maran over the share transfer of the company in 2015.

Rohatgi's retort came after Maran's lawyer Dushyant Dave claimed that under the current management a good brand like SpiceJet is facing winding up.

For a passenger airline to make a 6bln-rupee settlement offer while still emerging from COVID-induced stress is proof that the company is serious about resolving disputes and avoiding prolonged litigation, Rohatgi said.

SpiceJet had offered a final settlement of 6 bln rupees to its former promoter, but Maran had rejected it.

The apex court, on Thursday, once again advised SpiceJet and its former promoter to settle the dispute.

A bench headed by Chief Justice N.V. Ramana asked Rohatgi and Dave to talk to their clients and persuade them for a settlement.

However, Dave said that for a settlement, SpiceJet had to pay interest for the delay in payment of 5.78 bln rupees.