Chennai, Dec 8, 2008 : Spice Jet announced that it will appeal against the Madras High Court’s order directing the airline not to continue its operations. Justice Subramaniam, a Madras High Court judge, had ordered that the airline company cease operations Monday because it failed to pay a Swiss Maintenance, Repair, and Overhaul service provider.
SR Technics, a Zurich-based MRO provider, claimed that Spice Jet owes approximately 24 million US Dollars and that it has a ten year contract with the airline.
Credit Suisse AG had been given the right to receive payments for SR Technics by the MRO company.
The single Madras High Court bench had heard the appeal and ordered Spice Jet to be wound up.
After the airline requested that USD 5 million be deposited with the court within two weeks, the order was stayed for three more weeks.
Spice Jet had argued that SR Technics didn’t have approval from Director-General Civil Aviation (DGCA).However, the court ignored the argument and stated that the airline had used the services of SR Technics.
The airline company also claimed that the Swiss company had “fraudulently misinterpreted” the DGCA approval.They argued that this was against Indian and other applicable laws, and that this has made the entire agreement pointless.
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