SC asks SpiceJet to pay USD 1 million monthly for 6 months towards repayment of dues to Credit Suisse

Sep 22, 2023

New Delhi [India], September 22 : The Supreme Court on Friday asked private airliner SpiceJet Limited to pay USD 1 million per month for six months to Credit Suisse AG towards repayment of dues.
A bench of Justices Vikram Nath and Ahsanuddin Amanullah's direction came after counsel appearing for SpiceJet asked to allow it to pay USD 1 million per month in order to clear part of the arrears in six months.
The top court said the airline can resume paying USD 0.5 million to the Swiss firm from the seventh month. The airline is already paying USD 0.5 million as a monthly instalment to the Swiss firm.
The apex court now posted the matter for further hearing on October 20.
After the hearing, SpiceJet in a statement said, "The Supreme Court has noted our compliance with its previous orders and agreed with our proposal to pay the USD 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."
On September 11, the top court slammed SpiceJet Chairman and Managing Director Ajay Singh and warned him of sending him to Tihar jail for non-compliance with its order to make payment to global investment bank and financial services Credit Swiss.
As per Switzerland-based company Credit Suisse AG, SpiceJet had failed to honour its commitment to pay the bills for over USD 24 million raised by the Swiss company towards maintenance, repairing and overhauling of the aircraft engines and components.
Credit Suisse AG, a stock corporation registered under the laws of Switzerland, said SpiceJet had availed services of SR Technics, Switzerland, for maintenance, repair and overhauling of aircraft engines, modules, components, assemblies and parts which are mandatory for its operations.
On November 24, 2011, a ten-year contract was signed between SR Technica and SpiceJet. Meanwhile, SR Technica entered into a financing agreement with Credit Suisse AG on September 26, 2012, and assigned all its present and future rights to receive payments to Credit Suisse.
Credit Suisse had said it made repeated requests to SpiceJet to make payments under the various invoices and since SpiceJet did not honour its commitment, the Swiss company issued statutory notice under the Companies Act.