HC tells MD of SpiceJet to appear in person

livemint.com:

₹75 crore to Kal Airways within three months towards its interest liability under an arbitral award, but the amount remains unpaid even after the airline asked for an additional two-month extension. According to Singh, the Supreme Court, in its order on 7 July, observed that SpiceJet’s application was just a delaying tactic not to pay money even when there were court orders directing the same.

Singh further highlighted that SpiceJet had disregarded a previous high court order dated 4 November 2020, which directed the airline to submit an affidavit disclosing its assets. This directive was reaffirmed by a later order dated 29 May, but SpiceJet has yet to file the required affidavit.

Senior counsel Sandeep Sethi, representing the airline, argued against an early hearing, suggesting that the matter be taken up at the next hearing. However, the court observed SpiceJet’s non-compliance with court orders and noted that the airline had failed to file the affidavit of disclosure of assets, despite being directed to do so twice.

According to the court under Order 21, Rule 41(3) of the Code of Civil Procedure (CPC), the managing director of the airline will be required to appear in the next hearing to answer the court. Rule 21, Rule 41(3) CPC allows the court to order the managing director or other principal officer of a judgement debtor’s company to appear in court and provide information about the company’s assets if the judgement debtor fails to file an affidavit of disclosure of assets.