NEW DELHI: India’s high courtroom on Monday directed SpiceJet to pay $1.5 million in a case associated to unpaid dues to Credit score Suisse by Sept. 15 and warned the price range 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 it has didn’t pay as per a schedule agreed upon final 12 months.
If SpiceJet fails to pay, the Supreme Courtroom will take “drastic motion” when the case will subsequent be heard on Sept. 22, choose stated, with out giving particulars. The listening to was attended by SpiceJet chief and co-founder Ajay Singh.
The courtroom order is the most recent setback for cash-strapped SpiceJet which advised an Indian courtroom final month it was “struggling to remain afloat” after it was ordered to make a cost in a separate case towards the airline’s former proprietor.
SpiceJet didn’t instantly reply to a request for remark, however the Supreme Courtroom choose stated the airline had requested for extra time to file its response to the case.
The airline had beforehand stated the Credit score Suisse debt was an outdated one which predated the tenure of its present administration.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 Credit score Suisse’s declare of unpaid dues of round $24 million, which led to the Madras Excessive Courtroom’s order that the airline be wound up in 2021.
In an enchantment towards the excessive courtroom order, the highest courtroom suspended the winding-up proceedings, permitting each events to debate a settlement. In August 2022, either side knowledgeable the highest courtroom that they’d agreed to settle the dispute.
However subsequently, Credit score Suisse in March approached the Supreme Courtroom in search of to provoke contempt proceedings towards SpiceJet and Singh over “a wilful and intentional disobedience” of courtroom orders and failure to pay dues of $3.9 million as per a settlement between the 2 sides.
The courtroom has directed Singh to reply to the contempt case inside 4 weeks and be current at hearings.
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 it has didn’t pay as per a schedule agreed upon final 12 months.
If SpiceJet fails to pay, the Supreme Courtroom will take “drastic motion” when the case will subsequent be heard on Sept. 22, choose stated, with out giving particulars. The listening to was attended by SpiceJet chief and co-founder Ajay Singh.
The courtroom order is the most recent setback for cash-strapped SpiceJet which advised an Indian courtroom final month it was “struggling to remain afloat” after it was ordered to make a cost in a separate case towards the airline’s former proprietor.
SpiceJet didn’t instantly reply to a request for remark, however the Supreme Courtroom choose stated the airline had requested for extra time to file its response to the case.
The airline had beforehand stated 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 Credit score Suisse’s declare of unpaid dues of round $24 million, which led to the Madras Excessive Courtroom’s order that the airline be wound up in 2021.
In an enchantment towards the excessive courtroom order, the highest courtroom suspended the winding-up proceedings, permitting each events to debate a settlement. In August 2022, either side knowledgeable the highest courtroom that they’d agreed to settle the dispute.
However subsequently, Credit score Suisse in March approached the Supreme Courtroom in search of to provoke contempt proceedings towards SpiceJet and Singh over “a wilful and intentional disobedience” of courtroom orders and failure to pay dues of $3.9 million as per a settlement between the 2 sides.
The courtroom has directed Singh to reply to the contempt case inside 4 weeks and be current at hearings.
