SpiceJet and Swiss company Credit Suisse AG tell Supreme Court they have resolved financial dispute

SpiceJet and Credit Suisse tell Supreme Court they have resolved financial dispute

According to the Swiss firm, SpiceJet had used maintenance and repair services.

New Delhi:

SpiceJet and Swiss-based Credit Suisse AG informed the Supreme Court on Thursday of the resolution of their financial dispute which led to the withdrawal of an appeal by the low-cost airline against a Madras High Court verdict which had ordered its liquidation due to alleged non-payment of contributions to the Swiss firm.

“There is a settlement that took place on May 23, 2022, in accordance with the terms of the consent. In view of this, both parties are satisfied with the settlement and wish to withdraw the SLP (special authorization request) filed by the petitioner.

“Accordingly, the request is granted,” a Supreme Court composed of Chief Justice NV Ramana and Justices Hima Kohli and CT Ravikumar said in the order.

The parties, he said, are bound by the consent terms.

“It should be noted that a certain amount has been deposited in the Madras High Court pursuant to the order of the Madras High Court. The parties are free to apply for the release of the money,” said the Supreme Court.

The airline initially informed the bench of the settlement of the dispute with the Swiss company and said that there was a bank guarantee given to the Registrar of the Madras High Court as per the order of the High Court.

Now, under the terms of the settlement, the bank guarantee must be released and returned to the bank, he said.

The high court took note of the submission and said that the parties concerned were free to ask the high court to release the bank guarantee.

On appeal from SpiceJet, the bench had, on January 28, stayed the publication of the notice of liquidation and the order enjoining the official liquidator at the Madras High Court to take over the assets of the low-cost airline. cost.

She had also asked SpiceJet to settle the financial dispute with the Swiss firm.

SpiceJet had moved the Supreme Court against the January 11 order of a divisional bench of the Madras High Court upholding a recent verdict by the single judge.

The seat of the single judge, while hearing the plea of ​​the Swiss firm, had ordered the liquidation of SpiceJet and had ordered the official liquidator at the tribunal de grande instance to take over its assets.

Credit Suisse AG had moved the High Court’s single-judge seat alleging SpiceJet failed to honor its commitment to pay the more than $24 million bills it had raised for maintenance, repair and overhaul aircraft engines and components.

The company petition, filed by the Swiss company, sought the winding up of SpiceJet under the provisions of the Companies Act 1956 and appointed the official High Court liquidator as liquidator of SpiceJet with full powers under of Article 448 of the Companies Act. take charge of its goods, properties, goodwill and books of accounts.

According to the Swiss company, SpiceJet had contracted the services of SR Technics, Switzerland, for the maintenance, repair and overhaul of aircraft engines, modules, components, assemblies and parts, which were mandatory for its operations. A 10-year agreement for these services was concluded between SpiceJet and SR Technics on November 24, 2011. Payment terms have also been agreed.

(Except for the title, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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