NEW DELHI: “Do you want to run or close shop?” the Supreme Court asked SpiceJet on Friday. It slammed the beleaguered low-cost carrier — facing a winding-up process initiated by Credit Suisse for defaulting on payment of $24 million — for mismanaging its finances. The apex court also warned that the airline would be declared insolvent if it did not pay up its dues.
Sensing the mood of the bench, senior advocate Harish Salve sought three weeks from a bench of Chief Justice NV Ramana and Justices AS Bopanna and Hima Kohli to “work out something” to avoid the winding-up process. “We have made an offer and are trying to work out something with Credit Suisse,” Salve said.
Appearing for Credit Suisse, senior advocate KV Vishwanathan told the court that SpiceJet must make a serious offer. “What is on the table is not worth mentio- ning. The offer has to be creditable,” Vishwanathan said.
The CJI minced no words, while trying to point out the unbecoming corporate behavior of SpiceJet.
“Do you want to run or close shop? This is not the way one runs business as an air-line. It is a serious matter. If you are not serious, we will declare you insolvent and allow winding up of the airline. What is this. , , , You do not pay up your dues. ,
After Salve assured the court that SpiceJet would try to resolve it within three weeks, the bench stayed the notification for appointment of provisional liquidator for winding up the airline. On January 11, a division bench of the Madras high court had upheld a single-bench order to allow a winding-up petition agaCredit Suisse AG for defaulting on payment of about $24 million.
The HC had stayed the operation of the order till January 28, allowing SpiceJet to challenge the decision in the Supreme Court.
Sensing the mood of the bench, senior advocate Harish Salve sought three weeks from a bench of Chief Justice NV Ramana and Justices AS Bopanna and Hima Kohli to “work out something” to avoid the winding-up process. “We have made an offer and are trying to work out something with Credit Suisse,” Salve said.
Appearing for Credit Suisse, senior advocate KV Vishwanathan told the court that SpiceJet must make a serious offer. “What is on the table is not worth mentio- ning. The offer has to be creditable,” Vishwanathan said.
The CJI minced no words, while trying to point out the unbecoming corporate behavior of SpiceJet.
“Do you want to run or close shop? This is not the way one runs business as an air-line. It is a serious matter. If you are not serious, we will declare you insolvent and allow winding up of the airline. What is this. , , , You do not pay up your dues. ,
After Salve assured the court that SpiceJet would try to resolve it within three weeks, the bench stayed the notification for appointment of provisional liquidator for winding up the airline. On January 11, a division bench of the Madras high court had upheld a single-bench order to allow a winding-up petition agaCredit Suisse AG for defaulting on payment of about $24 million.
The HC had stayed the operation of the order till January 28, allowing SpiceJet to challenge the decision in the Supreme Court.
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