Supreme Court Orders SpiceJet to Pay $1 Million Per Month to Credit Suisse to Clear Dues
The Supreme Court has directed SpiceJet to pay $1 million per month to global investment bank, Credit Suisse to clear its
Supreme Court Orders SpiceJet to Pay $1 Million Per Month to Credit Suisse to Clear Dues
Directs the airlines’ Managing Director Ajay Singh to be present in the court at the next hearing on 20 October
The Supreme Court has directed SpiceJet to pay $1 million per month (for six months) to global investment bank, Credit Suisse to clear its long-pending dues.
In the Credit Suisse AG and anr vs Ajay Singh and anr case, the bench of Justice Vikram Nath and Justice Ahsanuddin Amanullah also directed that SpiceJet Chairperson and Managing Director, Ajay Singh should personally present himself in court for the next hearing.
The bench stated, "We accept the request that the arrears would be cleared in the next six months by paying the installment of $ 500,000 US dollars every month and in addition, thereto regular installment of 500,000 US dollars would also be paid. In effect, 1 million US dollars to be paid every month for the next six months so that the seventh month it would be only the regular installment for that month."
The cash-strapped low-cost airline company was paying $500,000 a month to the bank. However, the bank desired an increase and sought the payment of $1.5 million a month.
In August, the Apex Court issued a contempt notice to Singh on a plea filed by the Swiss bank in April, accusing the carrier of backtracking from a court-mandated settlement plan towards the dues.
The dispute arose in May 2022 after the two entities entered an agreement to resolve a payment issue concerning the airline’s failure to pay dues amounting to $20 million to SR Technics, a Swiss aircraft maintenance company.
Recently, the Delhi High Court had ordered SpiceJet and its Chairperson to pay Rs.100 crore to Kalanithi Maran and his KAL Airways after the July 2018 arbitral award, called for a refund of Rs.270 crores by SpiceJet.
While Senior Advocate Siddhartha Dave appeared for Credit Suisse, SpiceJet and Ajay Singh were represented by Senior Advocates Kapil Sibal, Shyam Divan, and Vivek Tankha.