SC asks Spicejet to pay $1 million/month to Credit Suisse for the next six months, ET LegalWorld | Court Practice News

The Supreme Court on Friday directed Spicejet Chairman and Managing Director Ajay Singh to pay $1 million every month to the global investment bank and financial services firm Credit Suisse for a period of the next six months.

A bench of Justices Vikram Nath and Ahsanuddin Amanullah said that in addition to the regular payment of $500,000 per month, the budget airline will also clear arrears of $3 million in six installments, thus making an effective transfer of $1 million every month to Credit Suisse.

The apex court ordered that it will take up the matter for hearing on October 20 for the purpose of monitoring the compliance and did not dispense with the personal presence of Ajay Singh and Company Secretary Chandan Sand on the next date of listing.

In an affidavit filed before the Supreme Court, Singh has tendered unconditional apology for SpiceJet not being able to meet its obligations under the consent terms in a timely manner.

Last week, Spice had said that it has complied with the apex court’s directive by transferring $1.5 million to Credit Suisse.

In an earlier hearing on September 11, the Supreme Court had issued stern warning to the budget carrier’s CMD for defaulting in making the due payments to the global investment bank and financial services firm.

The top court had withdrawn the airlines from liquidation after SpiceJet promised to pay $500,000 to Credit Suisse AG every month.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 the two parties entered in May last year, which was endorsed by the Supreme Court, SpiceJet is required to pay an amount of $500,000 by the 15th of each month.

After the hearing, the Spicejet spokesperson issued a statement saying that the Supreme Court has agreed with its proposal to pay the $3 million arrears over the next 6 months after noting compliance with previous orders.

  • Published On Sep 22, 2023 at 07:00 PM IST

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