Court upholds winding-up petition, appoints Official Liquidator, dismisses appeals

SpiceJet Limited Versus Credit Suisse AG

SpiceJet Limited Versus Credit Suisse AG - TMI Issues Involved:
1. Admission of the winding-up petition under Sections 433(e) and (f) of the Companies Act, 1956.
2. Appointment of the Official Liquidator as Provisional Liquidator.
3. Validity of the documents relied upon by the petitioner.
4. Validity of the service provider's license from the Director General of Civil Aviation (DGCA).

Issue-wise Detailed Analysis:

1. Admission of the Winding-Up Petition:
The appeals challenge the Company Court's order admitting the winding-up petition under Sections 433(e) and (f) of the Companies Act, 1956. The petitioner claimed the respondent company owed it more than 24 million USD. A notice under Sections 433 and 434 was served on the respondent, which was not responded to, invoking the deeming fiction under Section 434(1)(a). The court found that the debt was not bonafidely disputed and the defense was not substantial, thus justifying the admission of the petition.

2. Appointment of the Official Liquidator as Provisional Liquidator:
The Company Court also appointed the Official Liquidator as Provisional Liquidator. The court found this appointment justified given the circumstances, including the respondent's failure to pay the admitted dues. The court noted that the winding-up petition, filed in 2015, was only taken up for admission in 2021, indicating a significant delay that did not benefit the petitioner.

3. Validity of the Documents Relied Upon by the Petitioner:
The appellant argued that the documents relied upon by the petitioner were not stamped, and thus, Indian courts should not take cognizance of them. The court rejected this argument, noting that at the stage of admission of the winding-up petition, the focus is on whether the debt is bonafidely disputed, not on the sufficiency of the stamp on the documents. The court cited binding decisions from the Division Bench and the Bombay High Court to support this view.

4. Validity of the Service Provider's License from DGCA:
The appellant contended that SR Technics did not have a valid license from the DGCA, and thus, any maintenance services provided were illegal, nullifying the debt. The court rejected this argument, noting that the appellant had accepted the invoices and signed bills of exchange related to the services. Additionally, the appellant's previous stance in international arbitration proceedings contradicted this defense, further undermining its credibility.

Conclusion:
The court dismissed the appeals, finding no error in the Company Court's orders. The defenses raised by the appellant were not considered bonafide, and the admission of the winding-up petition and appointment of the Provisional Liquidator were upheld. The court extended the stay granted by the Company Court until 28.01.2022 to allow for a meaningful challenge to this order.