SpiceJet To Pay $1.5 Million To Credit score Suisse After Supreme Court docket Order

Credit score Suisse and SpiceJet have been engaged in a authorized dispute since 2015 (Representational)

New Delhi:

SpiceJet mentioned on Monday it will pay $1.5 million to Credit score Suisse as demanded by the Supreme Court docket. 

Earlier within the day, the Supreme Court docket ordered SpiceJet to make the cost by September 15 in a case associated to unpaid dues and warned the funds airline of unspecified “drastic motion” on the subsequent listening to if it failed to take action.

A 3rd of the quantity is a part of a month-to-month settlement plan SpiceJet had beforehand agreed with Credit score Suisse, and the remainder are unpaid dues to the financial institution which have accrued since final 12 months after the airline didn’t sustain with the cost schedule.

If SpiceJet fails to pay, the Supreme Court docket will take “drastic motion” on the subsequent listening to on September 22, it mentioned.

“Sufficient of this dilly-dally enterprise … We’re not bothered even in the event you die,” one of many two judges mentioned throughout the listening to, which was attended by SpiceJet chief Ajay Singh.

The airline had beforehand mentioned the Credit score Suisse debt was an outdated one which predated the tenure of its present administration.

Credit score Suisse and SpiceJet have been engaged in a authorized dispute since 2015 over the financial institution’s declare of unpaid dues of round $24 million, which led to the Madras Excessive Court docket’s order that the airline be wound up in 2021.

Even after agreeing to a settlement plan, the dues weren’t paid, and in March Credit score Suisse approached the Supreme Court docket looking for to provoke contempt proceedings in opposition to SpiceJet and Singh over “a wilful and intentional disobedience” of courtroom orders and failure to pay dues of $4.5 million.

The courtroom order is the most recent setback for cash-strapped SpiceJet which informed a courtroom final month it was “struggling to remain afloat” after it was ordered to pay Rs 100 crores to its former proprietor, Kalanithi Maran, by September 10 as a part of an arbitration order in a separate case.

In that case, additionally heard on Monday at a Delhi Excessive Court docket, SpiceJet mentioned it had deposited 625 million rupees of that quantity.

The airline mentioned late on Monday it will full the cost of 1 billion rupees to Mr Maran by Tuesday.

(This story has not been edited by Ednbox employees and is auto-generated from a syndicated feed.)