Supreme Court warns SpiceJet of ‘drastic action’ if Credit Suisse dues are not paid
“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…this is too much,” the court said.
- Sep 11, 2023,
- Updated Sep 11, 2023 2:32 PM IST
The Supreme Court warned low-cost carrier SpiceJet of ‘drastic action’ if the dues owed to Credit Suisse are not paid. The apex court directed SpiceJet to pay $1.5 million in the case related to Credit Suisse by September 15.
“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…this is too much,” the court said.
SpiceJet’s dues include part of a monthly settlement plan which forms a third of the amount, and the rest are unpaid dues to the bank. The court also stated that if the payment – $500,000 towards an installment, along with $1 million towards the defaulted amount – is not paid then founder Ajay Singh would be sent to jail. The court also asked Singh to be present in every hearing.
Credit Suisse had approached the Supreme Court seeking to initiate contempt proceedings against SpiceJet and Ajay Singh. They accused the airline of “wilful and intentional disobedience” of the court orders and its failure to repay dues of $3.9 million as part of a settlement between the two sides.
The two parties have been engaged in a legal dispute since 2015 after Credit Suisse claimed $24 million of unpaid dues. This eventually led to a court order by the Madras High Court for the airline to wind up in 2021.
The Supreme Court subsequently suspended the winding-up proceedings and allowed both parties to discuss a settlement, which Credit Suisse said the airline has not paid.
Also read: SpiceJet says process for depositing employees' TDS since FY23 'initiated'
Also read: Delhi HC asks SpiceJet and CMD Ajay Singh to pay Rs 100 cr to Kalanithi Maran to prove bona fide
The Supreme Court warned low-cost carrier SpiceJet of ‘drastic action’ if the dues owed to Credit Suisse are not paid. The apex court directed SpiceJet to pay $1.5 million in the case related to Credit Suisse by September 15.
“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…this is too much,” the court said.
SpiceJet’s dues include part of a monthly settlement plan which forms a third of the amount, and the rest are unpaid dues to the bank. The court also stated that if the payment – $500,000 towards an installment, along with $1 million towards the defaulted amount – is not paid then founder Ajay Singh would be sent to jail. The court also asked Singh to be present in every hearing.
Credit Suisse had approached the Supreme Court seeking to initiate contempt proceedings against SpiceJet and Ajay Singh. They accused the airline of “wilful and intentional disobedience” of the court orders and its failure to repay dues of $3.9 million as part of a settlement between the two sides.
The two parties have been engaged in a legal dispute since 2015 after Credit Suisse claimed $24 million of unpaid dues. This eventually led to a court order by the Madras High Court for the airline to wind up in 2021.
The Supreme Court subsequently suspended the winding-up proceedings and allowed both parties to discuss a settlement, which Credit Suisse said the airline has not paid.
Also read: SpiceJet says process for depositing employees' TDS since FY23 'initiated'
Also read: Delhi HC asks SpiceJet and CMD Ajay Singh to pay Rs 100 cr to Kalanithi Maran to prove bona fide