SC grants six-month time to SpiceJet to clear $3-mn arrears to Credit Suisse

Supreme Court on Friday granted six-month time to low-cost airline SpiceJet Ltd to clear $3-million arrears to Credit Suisse. 

The apex court asked SpiceJet to pay $1 million every month for next six months to Credit Suisse in dispute over unpaid dues.

"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. 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 a spokesperson of SpiceJet.

At 1430 hours on Friday, SpiceJet's scrip on BSE closed 1.5% lower at Rs 36.48.

Earlier this month, the Supreme Court warned SpiceJet of "drastic action" if it fails to clear Credit Suisse's dues.

Credit Suisse and SpiceJet have been embroiled in a legal battle since 2015, with Credit Suisse asserting unpaid dues totaling approximately $24 million. This dispute ultimately resulted in a 2021 ruling by the Madras High Court, ordering the liquidation of the airline.

Credit Suisse had approached the Supreme Court seeking to initiate contempt proceedings against SpiceJet and its founder Ajay Singh. The Swiss lender 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.