 "SpiceJet")
SpiceJet on Friday stated that it has complied with the Supreme Court directive by paying $1.5 million to Credit Suisse on Thursday.
The apex court had on Monday told SpiceJet chairman and managing director (CMD) Ajay Singh that it was “not worried” even if the low-cost airline “shuts down.”
It also added that it would take “drastic measures” if Singh did not pay $1.5 million dues to the Swiss financial services firm by September 15. The court had also asked Singh to submit a proof of this payment.
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.
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Earlier this week, the Supreme Court directed the airline to pay the monthly installment of $500,000 and settle the outstanding $1 million owed to Credit Suisse by September 15.
The division Bench of Justices Vikram Nath and Ahsanuddin Amanullah had come down heavily on Singh, saying he would be sent to Tihar jail if he kept on “dilly-dallying on the payment.”
The next hearing is likely to be held on September 22.
The airline’s spokesperson said on Friday, “SpiceJet has complied with the directive of the Supreme Court by remitting $1.5 million to Credit Suisse. The payment was executed on Thursday.”
Separately, Singh is also embroiled in a dispute with former SpiceJet promoter Kalanithi Maran. This dispute started in 2015 when Maran sold his 58.46 per cent stake in SpiceJet for a meagre Rs 2.
In 2016, Maran took the matter to the Delhi High Court, alleging that the airline had breached its sale agreement by failing to issue him share warrants and preference shares.
In response, the court, in 2017, directed the airline to deposit Rs 579 crore and encouraged both parties to resolve the matter through arbitration. In 2018, an arbitration tribunal ruled in Maran’s favour, awarding him Rs 579 crore along with interest.
On May 29, the high court ordered SpiceJet to pay the interest of Rs 380 crore to Maran. However, on July 7, the Supreme Court rejected SpiceJet’s request for an extension to make the payment of Rs 380 crore to Maran and his company, Kal Airways.
On July 10, Kal Airways firmly stated that there was no possibility of an “amicable” settlement with SpiceJet. Kal Airways demanded that SpiceJet adhere to the court’s order to pay the interest amount.
On Monday, the high court granted Singh an opportunity to complete the payment of Rs 100 crore out of the total Rs 380 crore owed to Maran by Tuesday. SpiceJet successfully made this payment by the specified deadline.
