The Madras High Court on Monday directed SpiceJet to be wound up for non-payment of $24 million to Credit Suisse AG, a Zurich-based stock corporation. The Court directed the Official Liquidator to take over the assets of the carrier. However, after pronouncing the order, the judge stayed his own order for all further proceedings for three weeks. This is subject to the condition that the company deposits the amount equivalent to $5 million within two weeks.

V Ramakrishnan, Senior Counsel appearing SpiceJet sought the stay of the operation of the order, for a period of two weeks to enable the respondent to file an appeal.

An agreement for performance of certain services for a period of 10 years was entered into between the respondent and SR Technics in November 2011. SR Technics had raised invoices and the respondent had issued seven bills of exchange for the monies due under the invoices. The respondent acknowledges the debts from time to time by issuing a certificate of acceptance in relation to the bills of exchange which would imply that the respondent had not disputed the correctness of the claim made in the invoices.

The petitioner - Credit Suisse AG - entered into a financing agreement in September 2012 with SR Technics and under a transaction agreement, and SR Technics assigned all its present and future rights to receive payments under the agreement to the petitioner.

“I am therefore of the opinion that this Company Petition should be allowed and the respondent Company directed to be wound up. The Official Liquidator is directed to take over the assets of the respondent Company. Consequently, the connected miscellaneous petitions are closed. No costs in this petition,” the Order said.

"Considering the request [of Counsel Ramakrishnan], there will be an order of stay of all further proceedings pursuant to this order, for a period of three weeks, subject to the condition the respondent deposits the amount equivalent to five million dollars to the credit of C.P.No.363 of 2015 within a period of two weeks from today," the judge said in a separate order.