On Thursday, the Supreme Court instructed SpiceJet Ltd. to request a withdrawal of the $5 million bank guarantee that it had deposited with the court in May.

Following instructions from the Madras High Court, SpiceJet deposited the bank guarantee while the SC deliberated a winding-up petition Credit Suisse AG had filed against the airline. Now that the winding-up case has been resolved. A bench chaired by former chief justice NV Ramana noted that the two parties’ settlement was final and adjourned the case.

The low-cost airline had informed the top court on May 25 that its dispute with Credit Suisse over unpaid dues had been resolved. On May 23, the agreement was signed, and the Supreme Court received the consent terms.

Without providing any other information, the airline stated that the settlement required immediate payment of a specified amount and the balance over a mutually agreed-upon timetable.

The dispute began in November 2011 when SR Technics, Swiss maintenance, repair, and overhauling (MRO) service provider, signed a 10-year contract with the Ajay Singh-led airline for aircraft servicing and maintenance.

The airline had issued seven bills of exchange to settle the money owed on the Swiss company’s invoices, which were accompanied by seven invoices. Credit Suisse received all of the lender’s present and future rights to obtain payments under the arrangement when SR Technics and Credit Suisse agreed to a finance agreement in September 2012. However, Credit Suisse filed a winding-up suit against SpiceJet in the Madras High Court after the airline failed to make payments totalling more than $24 million.

In accordance with Section 433(e) of the Companies Act of 1956, a single-judge bench of the Madras High Court permitted winding-up proceedings against SpiceJet on December 6, 2021, and ordered the official liquidator to seize the airline’s assets.

A division bench heard the airline’s challenge to the ruling.

The division bench sustained the single judge’s order. The airline subsequently appealed the decision to the Supreme Court, which granted the firm three weeks to resolve the dispute and postponed the HC order to wind up the airline. The ultimate agreement, though, took more time.