Supreme Court to hear SpiceJet appeal against liquidation

India’s Supreme Court agreed on January 25 to hear a final appeal SpiceJet (SG, Delhi Int’l) filed against a liquidation order the Madras High Court accepted earlier this month over a USD24.1 million debt to investment bank Credit Suisse, the newspapers The Hindu and The Economic Times reported.

The airline’s senior lawyer, Mukul Rohatgi, pleaded urgency to resolve the matter while making an “oral mentioning” – a direct appeal – of the case before a Bench led by N V Ramana, chief justice of India.

In its own rejection of an initial appeal from the carrier, the Division Bench of the Madras court had postponed activation of the liquidation order until January 28 to give the company time to lodge a final appeal before the Supreme Court. The condition was that the airline deposit USD5 million with the court, which it did.

“This matter is regarding the winding up of an airline called SpiceJet. The protection is until Friday, please list the case on Friday or Monday,” Rohatgi requested, and the court agreed to do so on Friday, January 28.

SpiceJet stands accused of failing to pay Swiss MRO firm SR Technics for the maintenance and repair of engines, modules, components, assemblies, and parts under a contract dated November 24, 2011. SR Technics later gave Credit Suisse the authority to collect the debt.

A Single Judge Bench at the Madras court issued a winding up order for SpiceJet in December and appointed an official liquidator to take charge of its assets. SpiceJet then challenged that ruling, only for the Division Bench to rule in favour of the arguments presented by the Zurich-based investment banking firm.