 "SC tells Spicejet to pay Credit Suisse $1 mn per month for six months")
The Supreme Court on Friday allowed SpiceJet to pay Swiss firm Credit Suisse $1 million per month for six months towards its $3-million arrears.
SpiceJet said the apex court can send the airline’s Chairman and Managing Director (CMD) Ajay Singh to exile if the undertaking is not honoured.
The low-cost carrier told the court that it was already paying the Swiss firm $500,000 every month and now it wanted to increase the monthly instalment by another $500,000 for six months.
“The Supreme Court has noted our compliance with its previous orders and agreed with our proposal to pay the $3 million arrears over the next six months. This is a positive outcome for the company and our stakeholders, and we are grateful to the court for its understanding. We are committed to paying our dues in full and on time. We remain fully committed to upholding the highest standards of compliance and look forward to continuing our positive engagement with all stakeholders,” said the SpiceJet Spokesperson.
The Supreme Court noted SpiceJet is behind on monthly payments by $3 million. So, it has asked SpiceJet to regularise its payment from the 7th month ($500,000).
Senior advocates Kapil Sibal, Shyam Divan and Vivek Tanka requested the court to allow them to increase their instalment. “I am making a request. Instead of $1.5 million, I will pay $1 million,” Sibal said. Sibal also told the court that if the undertaking is not honoured, it can send him to exile.
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The court told Sibal, “He (Singh) is getting time. You are getting money. Where does that leave us?”
The court also directed Singh to be present in court for the next hearing on October 20.
SpiceJet, on September 15, had stated that it had complied with the Supreme Court directive by paying $1.5 million to Credit Suisse on Thursday.
Credit Suisse and SpiceJet have been embroiled in a legal conflict since 2015 concerning outstanding debts of approximately $24 million.
In August 2022, both the parties had informed the Supreme Court that they had come to an agreement.
Nevertheless, in March 2023, Credit Suisse had initiated a contempt case against Singh and the airline.
The Swiss firm asserted that SpiceJet had not honoured its payment obligations as outlined in the settlement terms.
The Supreme Court, had earlier this month, directed the airline to pay the monthly instalment of $500,000 and settle the outstanding $1 million owed to Credit Suisse by September 15.