Credit Suisse updated the Supreme Court Today regarding SpiceJet, confirming that the budget airline has settled its outstanding dues. Justices Hima Kohli and Ahsanuddin Amanullah acknowledged this update and scheduled a hearing for July to ensure SpiceJet avoids further defaults.
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Chandigarh: Credit Suisse informed the Supreme Court Today (March 22nd) that SpiceJet, the budget airline, has settled its outstanding dues.
This update was provided before a bench presided over by Justices Hima Kohli and Ahsanuddin Amanullah. The case pertains to SpiceJet’s failure to fulfill payments amounting to $20 million owed to Swiss aircraft maintenance company, SR Technics.
Acknowledging this development, the Court scheduled a hearing for July to ensure SpiceJet avoids any further defaults.
During the previous hearing, the bench had questioned how SpiceJet could propose taking over operations of another financially troubled low-cost airline (Go First) while still owing dues to the global investment bank, even after the initiation of contempt of court proceedings.
The Court had directed SpiceJet and its Chairman and Managing Director (CMD), Ajay Singh, to settle these dues by March 15 and abstain from taking further risks in the litigation.
In May 2022, SpiceJet and Credit Suisse had reached an agreement to resolve their payment dispute. However, disputes subsequently emerged between SpiceJet and the bank, leading to the matter being brought before the Supreme Court.
In April 2023, the Swiss bank filed a contempt petition against SpiceJet.
In August of the same year, the apex court issued a contempt notice to Singh following a plea filed by Credit Suisse, alleging SpiceJet’s failure to adhere to a court-ordered settlement plan for clearing the dues.
Subsequently, in September of that year, the Supreme Court directed SpiceJet to pay Credit Suisse $1 million per month for six months, aimed at settling the longstanding dues owed by the airline.
CASE TITLE:
Credit Suisse AG and Anr vs Ajay Singh and Anr.
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