Supreme Court orders SpiceJet to pay $1.5 million to Credit Suisse

SpiceJet ordered to pay Credit Suisse

The Supreme Court has issued a directive to SpiceJet, instructing the budget airline to pay $1.5 million to Credit Suisse by September 15th. This ruling is in connection with unpaid dues owed by SpiceJet to the bank. The court also issued a stern warning of "drastic action" if the payment is not made, with the next hearing scheduled for September 22nd.

Of the $1.5 million, one-third is part of a monthly settlement plan previously agreed upon by SpiceJet and Credit Suisse. The remainder represents unpaid dues that SpiceJet has failed to pay according to a schedule established last year. If SpiceJet fails to comply with this order, the Supreme Court has made it clear that unspecified "drastic action" will be taken.

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SpiceJet's financial struggles

This court order adds to the challenges faced by financially strained SpiceJet. The airline recently informed a court that it was "struggling to stay afloat" after being directed to make a payment in a separate case related to its former owner. SpiceJet has not yet commented on this latest ruling, but it did request additional time to respond to the case.

Long-standing legal dispute

The legal dispute between Credit Suisse and SpiceJet dates back to 2015, involving Credit Suisse's claim of unpaid dues totaling approximately $24 million. This dispute led to the Madras High Court's order for the airline's winding-up in 2021. However, in an appeal, the Supreme Court suspended the winding-up proceedings, allowing both parties to explore a settlement. Although an agreement was initially reached in August 2022, Credit Suisse subsequently sought contempt proceedings against SpiceJet and its co-founder Ajay Singh for alleged disobedience of court orders and failure to pay $3.9 million, as stipulated in the settlement.

The Supreme Court has directed Singh to respond to the contempt case within four weeks and to attend hearings. This legal saga continues to pose financial and legal challenges for SpiceJet.

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