The Madras High Court has stayed its earlier order of winding up SpiceJet and appointment of official liquidator for a period of three weeks. This is subject to the condition that the company deposits the amount equivalent to $5 million within a period of two weeks, SpiceJet said in a statement.

On Monday, the Madras HC had ordered the "winding up of SpiceJet” and the “appointment of official liquidator" in a case filed by Credit Suisse claiming non-payment of $24.01 million dues to engine maintenance services firm SRT Technics.

"The Madras HC despite holding that SRT did not have a valid authorization from DGCA to carry out engine maintenance during the currency of the agreement rejected the company's defence and ordered winding up of the company and directed the official liquidator to take over the assets of the company," SpiceJet said in a filing to BSE.

"The Company opposed the petition inter alia on the grounds that there is no legally enforceable debt because SRT, did not possess the relevant DGCA approval for provision of services under the Agreement. SRT made a fraudulent misrepresentation to the Company of having applicable DGCA approval for providing the services," the budget carrier further stated.

"The Company raised a bona fide dispute claiming that the provision of engine maintenance without DGCA approval is contrary to Indian and other applicable laws and voids the entire agreement. Since the agreement falls and is void, Credit Suisse as an assignee does not and cannot have any claim against the Company.

However, on the same day, the Madras High Court issued another order wherein it stayed its previous order and gave SpiceJet "a period of three weeks, subject to the condition that the company deposits the amount equivalent to $5 million within a period of two weeks."