SpiceJet-Credit Suisse Case: SC warns SpiceJet to settle Credit Suisse dues or face 'drastic action'

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Credit Suisse bank by September 15. The court also warned of "drastic action" if the payment is not made on time. As reported by Reuters, a third of the amount is part of a monthly settlement plan SpiceJet had previously agreed with Credit Suisse, and the rest are unpaid dues to the bank.

In March, Credit Suisse filed a request with the Supreme Court to commence contempt proceedings against SpiceJet and its founder, Ajay Singh. This action was taken due to alleged deliberate and intentional non-compliance with court orders and failure to settle a $3.9 million debt as stipulated in a prior settlement agreement between the parties. This information is disclosed in a court document.

Also Read: SpiceJet-Credit Suisse case: Supreme Court summons Ajay Singh for personal appearance Reuters reported that SpiceJet did not immediately respond to a request for comment. SpiceJet has contended that the outstanding debt in question is an older one that originated prior to the current management's tenure. The legal dispute between Credit Suisse and SpiceJet dates back to 2015, primarily revolving around Credit Suisse's assertion of unpaid dues amounting to approximately $24 million.

This dispute eventually resulted in a court order from the Madras High Court in 2021, mandating the winding up of the airline. Upon appealing the High Court's order for winding-up, the Supreme Court temporarily halted the liquidation proceedings. This decision provided an opportunity for both Credit Suisse and SpiceJet to engage in discussions aimed at reaching a settlement.