Spice Jet Ordered To Pay Up Credit Suisse, SC Warns Of Drastic Step
Spice Jet Chairman Ajay Singh has been ordered by the Supreme Court to pay an amount of $500,000 along with a $1million towards the defaulted amount to Credit Suisse by September 22. This came along with a warning that the other option could be Tihar Jail.
A bench which constituted of justices Vikram Nath and Ahsanuddin Amanullah observed that, “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,” the ET reported.
On Monday, the airline has agreed to pay the $1.5 million to the lender as ordered by the Supreme Court, reported the NDTV. Previously, on the amount due, the airline had said that it was an old debt, which predates the tenure of its present management.
Credit Suisse had approached the Supreme Court saying that the payments have not been made, which was settled earlier and wanted to initiate a case of contempt against the Managing Director of Spice Jet, Ajay Singh. The case is on account of failing to pay millions of dollars, with Credit Suisse filing for “wilful and intentional disobedience.” Earlier, Supreme Court had ordered the payment to be done by September 15, reported NDTV.
The legal dispute between Credit Suisse and Spice Jet has been going on since 2015, with Credit Suisse claiming that the Spice Jet has not paid dues amounting to $24 million which took the issue to Madras High Court. The court had ordered the airline to be would up in 2021. The apex court had suspended the order to wind up, when it was presented as an appeal against the high court order. The apex court had also allowed time for discussing a settlement between both the parties. This resulted with both the parties informing the Supreme Court of a settlement in August 2022.
Though the settlement was reached, in March, a case for contempt was filed by Credit Suisse against Ajay Singh. The company secretary and the airline has said that the dues have not been paid as per the settlement reached. The order comes as a setback, as the airlines has been reported to have said to the Court that it is cash-strapped and “struggling to stay afloat” as it has been ordered a payment of 100 crores to Kalanithi Maran, former owner, as part of another case, by September 10, reported the NDTV.
