Wednesday, July 30, 2014

Catering Firm Sues SpiceJet for Rs 8 Crore Dues

Chennai:

Private airline Carrier Spicejet is now fighting a legal battle for
its survival after a firm providing “in-flight services” to the
airline has taken it to court for allegedly failing to settle the dues
worth about Rs 8 crore.

Madras High court judge M Duraiswamy has issued a notice to Spicejet
returnable in four weeks besides permitting private notice after
Narang International Hotels having a registered office at The
Ambassador Hotel in Mumbai, after the petitioner urged the High court
to pass an order to wind up the company under provisions of The
Companies Act 1956.

The petitioner stated that Spicejet entered into an agreement on May
12, 2005 for providing inflight catering services ex-Delhi and Mumbai
from the authorized flight kitchens operating under Ambassador Sky
Chef.

As per the agreement the petitioner has to submit invoices every 15
days along with supporting documents and payment was to be made by
respondent within 15 days of the receipt of bill.

The petitioner alleged that invoices were not being paid on time by
the respondent as per the agreement and whenever the payments by the
respondent were made, they were made for less than the invoice amount.
The petitioner alleges that on April 17, 2014, the total outstanding
papyable to the petitioner for services ex-Delhi was 5.8 crore and for
Mumbai it was Rs 2.09 crore.

After several interactions through e-mails and by telephone failed,
the  petitioner sent a statutory notice on April 17 under Sections
433, 434 and 450 of Companies Act stating that they will be
approaching the High court by way of a petition to wind up the company
if they failed to pay up the debt.

The petititioner has urged in his petition that Madras High Court be
appointed as provisional liquidator of the assets and properties and
the income of the company and the company may be restrained by an
order of injunction from any manner encumbering, alienating, dealing
with or disposing off or parting with possession of its assets and
properties so as to protect the right and interest of the creditors.

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