LI Network
Published on: 14 September 2023 at 15:45 IST
The Supreme Court of India has taken a strong stance against SpiceJet Chairman and Managing Director Ajay Singh for failing to meet payment obligations to global investment bank and financial services firm Credit Suisse AG.
The court has directed both parties to provide evidence of depositing an installment due on September 15, 2023, along with an additional one million US Dollars from the outstanding amount. This stern warning comes with the threat of sending Mr. Ajay Singh to Tihar Jail should he not comply with the court’s order.
The Bench, comprised of Justice Vikram Nath and Justice Ahsanuddin Amanullah, emphasized that there is a significant outstanding amount owed according to the terms of a settlement reached on May 23, 2022.
This settlement was officially endorsed by the court on August 18, 2022. The dispute revolves around the exact sum, with the respondents claiming 4 million US Dollars owed and the petitioners asserting it to be 4.5 million US Dollars.
Furthermore, the Bench has granted an extension for the respondents to file a response and outline their plan to fulfill the settlement terms. Under the agreement, SpiceJet Ltd. Is required to deposit 500,000 US Dollars by the 15th of each month.
Expressing deep frustration with the continuous delays and non-compliance, the Bench issued a stern warning to Mr. Ajay Singh, emphasizing that they are prepared to take drastic measures. Court stated, “We have to move to the next drastic step. We are not worried even if you shut down,” further emphasizing, “We are not bothered even if you die. It is too much. We will send you to Tihar jail if you do not pay.”
The Supreme Court’s involvement in this case stems from a Contempt Petition filed by Credit Suisse, alleging “a wilful and intentional disobedience” of court orders and a failure to honor financial commitments as per the settlement. According to the petitioner, SpiceJet availed services for aircraft maintenance, repair, and overhaul in 2011, which were essential for its operations over a ten-year period.
The court has scheduled the next hearing for September 22, 2023.
