SpiceJet shutdown crisis: Airlines reach Supreme Court over payment dispute

SpiceJet shutdown crisis: Airlines reach Supreme Court over payment dispute

SpiceJet Airlines is in danger of going out of business. As a result, the company has taken the payment dispute to the Supreme Court. The airlines will sit if the hearing is not completed soon, according to the petition to the Supreme Court. The Supreme Court has agreed to hear the case as soon as possible. Chief Justice NV Ramana announced that the case would be heard on January 28.

Mukul Rohatgi, speaking on behalf of SpiceJet, stated that the case would be heard soon. He had stated that the hearing for the airline SpiceJet’s winding up should be held on Friday, January 28 or the airline would be forced to close.

SpiceJet was at the centre of it all.

SpiceJet has filed a petition to end a ten-year standoff with Swiss financial services firm Credit Suisse AG over dues of around Rs 180 crore. SpiceJet, based in Gurgaon, last reported a profit in December 2019. When compared to a year ago, the loss increased to over Rs 561 crore in the second quarter of this fiscal year.

In the last year, its stock has lost nearly 30% of its value. The airline’s negative net worth has gotten closer than it was in 2014. The airlines were about to cease operations at the time.

In the Division Bench, the appeal was dismissed.

A single bench of the Madras High Court ordered the winding up of SpiceJet Ltd on December 7, 2021, in response to a company petition filed by Credit Suisse AG, a Swiss stock corporation and a creditor. The order was, however, postponed for two weeks. SpiceJet then filed an appeal with the Division Bench. On the 11th of January, the division bench dismissed it. The order was also postponed until January 28 by the Division Bench.