One-liner: The Madras High Court has ordered the winding up of private carrier SpiceJet Limited and directed the Official Liquidator attached to the HC to take over its assets, in a plea filed by a Swiss company over unpaid dues.
Winding up of firm: The court was allowing a petition from Credit Suisse AG, a stock company registered under the laws of Switzerland, which prayed for winding up of the Indian firm under the provisions of the Companies Act, 1956.
Services of Swiss firm availed: According to the petitioner, SpiceJet had availed of the services of SR Technics, Switzerland, for maintenance, repair and overhauling of aircraft engines, modules, components, assemblies and parts, which are mandatory for its operations.
Need to know: The petitioner has been making repeated requests to the airline to make payments under various invoices. Since it did not honour its commitment under the agreements with SR Technics.
SpiceJet contention: SpiceJet contended the alleged debts are not legally enforceable and as such there cannot be a winding up order under Section 433 of the Companies Act.
Bound to fulfill obligations: Rejecting the contentions, the judge said that a reading of certain Clauses in the agreement shows the parties to the contract are bound to fulfill all obligations, including recovery of excess payments made by SpiceJet to SR Technics.