LI Network
Published on: 26 September 2023 at 17:01 IST
The Supreme Court has issued a directive to SpiceJet, instructing the airline to make monthly payments of $1 million to Credit Suisse for a duration of six months in order to settle long-standing financial obligations.
The order was delivered by a bench comprising Justices Vikram Nath and Ahsanuddin Amanullah. Furthermore, the Court has mandated that Ajay Singh, the Chairman and Managing Director of SpiceJet, personally attend the next hearing scheduled for October 20.
The Court’s order stated, “We accept the request … that the arrears would be cleared in the next six months by paying an installment of $500,000 US Dollars every month and, in addition, the 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.”
SpiceJet, a low-cost airline facing financial difficulties, had previously been making monthly payments of $500,000 to the bank. Credit Suisse had sought an increase in these monthly payments, requesting $1.5 million.
In August, the Supreme Court issued a contempt notice to Ajay Singh in response to a plea filed by Credit Suisse. The plea accused SpiceJet of reneging on a court-mandated settlement plan for settling outstanding dues. Credit Suisse had filed the contempt petition against SpiceJet in April.
The dispute between the two parties originated when they entered into an agreement in May 2022, to address a payment dispute related to SpiceJet’s failure to pay $20 million in dues to SR Technics, a Swiss aircraft maintenance company.