Supreme Court has asked SpiceJet’s Chairman Ajay Singh to pay $1 million every month for the next six months to clear arrears of $3 million, which includes $500,000 each for arears and regular installments. The order is in line with SpiceJet’s payment proposal.
After six months of payments, Singh has to pay regular instalment of $5,00,000 to Credit Suisse, the court ordered. Singh will also have to be present in the court on the next date of hearing on Oct 20.
This comes after SpiceJet last week said they have completed payment of $1.5 million payment to Credit Suisse, days after India’s apex court came down heavily on the budget carrier’s chairman to make the payment or face consequences.
India’s apex court accepted Singh’s counsel Kapil Sibal’s request to give him 6-months time to pay the arrears.
“The Hon’ble Supreme Court has noted our compliance with its previous orders and agreed with our proposal to pay the $3 million arrears over the next 6 months,” a SpiceJet spokesperson said, adding that this is a “positive outcome” for the company and their stakeholders.
“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,” the spokesperson said.
SpiceJet’s shares were down 1.3% at Rs 36.55 apiece on BSE at 1:00 p.m. on Friday. The stock had briefly turned higher following the court order.
Earlier this month, Supreme Court had asked Singh to make a payment of $5,00,000 towards an instalment to Credit Suisse by September 22, along with $1 million towards the defaulted amount.
The court had further warned Singh that he would be sent to Tihar jail if the payment wasn’t made.
Credit Suisse in March approached the top court seeking to initiate contempt proceedings against Singh and SpiceJet over “a wilful and intentional disobedience” of court orders and failure to pay dues of several million dollars as per a settlement between the two sides, a court filing shows.
Credit Suisse and SpiceJet have been engaged in a legal dispute since 2015 over Credit Suisse’s claim of unpaid dues of around $24 million, which led to the Madras High Court’s order that the airline be wound up in 2021. In an appeal against the high court order, the top court suspended the winding-up proceedings, allowing both parties to discuss a settlement.
In August 2022, both sides informed the top court that they had agreed to settle the dispute.
But subsequently, in March, Credit Suisse filed a contempt case against managing director Ajay Singh, with the company secretary and the airline saying they had failed to pay dues as per the terms of settlement.