New Delhi, October 03, 2023 : The Supreme Court has allowed low-cost airline SpiceJet to move the Bombay High Court to seek a modification in its order asking to re-hire employees whose service contracts had expired or allegedly terminated after the pandemic on December 31, 2021.
The airline, in its appeal filed in May 2023 challenging the HC order, said that these employees were on “fixed-term contracts” and their employment came to an end on expiry of the contract period.
The apex court asked the domestic low-cost carrier to highlight its “reduced flight operations” as a ground to seek a modification, Hindustan Times reported on Saturday. The court further noted that the documents relating to the period of service of the employees and the reduction in the number of flight operations, be brought to the notice of the high court.
The bench of justices JK Maheshwari and KV Viswanathan noted that at the time when the high court order was passed in May this year, the private airline operated 242 daily flights with 44 flights operating each day from Mumbai.
The carrier said that while it had 90 aircraft pre-Covid and flew to 9 countries, it now has only 32 (including 3 wet-leased) aircraft, flying to four countries. It added that the number of flight operations per day too had fallen from 522 to 165 now.
“…at the first instance, it is imperative on the petitioners to bring all those documents to the notice of the High Court and seek modification of the order impugned,” the bench said.
Senior advocate CU Singh, appearing for SpiceJet along with advocate Nupur Kumar, pointed out that since then, there has been further downsizing in the company, and the daily flights have been reduced to just 165, with only 11 flights operating from Mumbai.
The bench, after going through the May 3 order of the Bombay High Court, found that this fact was not considered in the entire judgment allowing SpiceJet to withdraw its appeal and approach the high court. “At the first instance, it is imperative on the petitioners to bring all those documents to the notice of the high court and seek modification of the order impugned,” the Supreme Court said.
Earlier this month, the apex court came down heavily on SpiceJet Chairman and Managing Director Ajay Singh and warned him he will be sent to Tihar jail for non-compliance with its order on making payment to global investment bank and financial services firm Credit Suisse AG.
The top court asked Singh to pay $5,00,000 towards an installment to the Swiss firm along with a $1 million defaulted amount.
“We have to move to the next drastic step. We are not worried if you shut down. Enough of this dilly-dally business… you will have to abide by the consent terms. We are not bothered even if you die. It is too much,” a bench comprising justices Vikram Nath and Ahsanuddin Amanullah observed during the hearing.
according to the reports published in www.businesstoday.in .
Later on September 14, the carrier said it had completed the payment.
