Madras High Court Extends Stay On Single Judge SpiceJet Order Till January 11

Madras High Court extended till January 11, the operation of an interim stay on the verdict of a single judge, which ordered winding up of SpiceJet

The Madras High Court on Thursday extended till January 11, the operation of an interim stay on the verdict of a single judge, which ordered the winding up of private airliner SpiceJet for non-payment of $24 million to a Switzerland-based stock corporation.

This follows remittance of $5 million, as directed by the single judge, earlier.

Meanwhile, Spicejet preferred an appeal challenging the judgment dated December 6 of the single judge R Subramanian, which ordered the winding up of the private carrier and directed the Official Liquidator attached to the High Court to take over its assets.

While allowing a company petition from Credit Suisse AG, the stock corporation registered under the laws of Switzerland, the judge on December 6 had held SpiceJet had miserably failed to satisfy the three pronged test suggested by the Supreme Court in a similar case and hence had rendered itself liable to be wound up for its inability to pay its debts under Section 433 (e) of the Companies Act 1956.