SC warns SpiceJet CMD Ajay Singh for making default in payment of Credit Suisse AG

The Supreme Court has issued a stern warning to SpiceJet Chairman and Managing Director (CMD), Ajay Singh, for default in making the due payments to global investment bank

New Delhi: The Supreme Court has issued a stern warning to SpiceJet Chairman and Managing Director (CMD), Ajay Singh, for default in making the due payments to global investment bank and financial services firm Credit Suisse AG.

A bench comprising of Justice Vikram Nath and Justice Ahsanuddin Amanullah ordered the low-cost airline to deposit the monthly installment of $500,000 by September 15 along with an additional $1 million out of the defaulted amount.

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Last year, the top court had withdrawn the airlines from liquidation after SpiceJet promised to pay $500,000 to Credit Suisse AG every month.

As per the settlement entered into between the parties in May last year, which was endorsed by the top court, SpiceJet is required to pay this amount of $500,000 by the 15th of each month.

During the hearing on September 11, SpiceJet sought time to file its response indicating the way forward.

However, the Supreme Court asked Ajay Singh to file proof of deposit of the installment, due on September 15, 2023, and also for an additional $1 million out of the defaulted amount before September 22.

“Though as of now more than $6.5 million has to be deposited, but only a little over $2 million has been deposited,” had noted the Supreme Court in its order passed on August 14 while issuing the contempt notice.

SpiceJet claims that it owes an outstanding arrear of $4 million to Credit Suisse AG. However, Credit Suisse AG claims this outstanding amount is $4.5 million.

The Supreme Court directed SpiceJet CMD Singh and Secretary Chandan San to again remain present in the court on September 22, the next date of hearing.

Further orders will be passed on the said date taking into consideration the status of compliance, it added.

Recently on September 12, SpiceJet has paid Rs 100 crore to Kal Airways promoter Kalanithi Maran, as part of a Rs 380 crore arbitral award order, following a directive from the Delhi High Court, instructing the airline to fulfill the payment obligation.