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Shares of SpiceJet on September 15 climbed more than 4% after the company completed a payment of $1.5 million to global investment bank and financial services firm Credit Suisse. The stock gained 4.22% to ₹40 after a positive beginning on the Bombay Stock Exchange (BSE.)

SpiceJet has complied with the directive of the Supreme Court by remitting $1.5 million to Credit Suisse, according to a company statement on September 15. “The payment was executed on Thursday,” it added.

The Supreme Court had come down hard on SpiceJet chairman and Managing Director Ajay Singh, warning him he will be sent to Tihar jail for non-compliance with its order on making payment to Credit Suisse AG.

The top court had asked Singh to pay $5,00,000 towards an instalment to the Swiss firm along with a $1 million defaulted amount.

In a statement on Tuesday, the airline said, “SpiceJet acknowledges the legal process and is committed to complying with all court’s directives and obligations in the Credit Suisse case and will make the payment of $1.5 million as per the court directive. Till date, SpiceJet has already paid a total of $8 million to Credit Suisse.” “SpiceJet remains committed to the highest standards of transparency and legal compliance. This liability is an old one and predates the current promoter taking over the company,” it had said.

According to the Swiss firm, SpiceJet had availed the services of SR Technics, Switzerland, for maintenance, repair, and overhaul of aircraft engines, modules, components, assemblies, and parts, which were mandatory for its operations.

New Delhi:

The Supreme Court has come down hard on SpiceJet Chairman and Managing Director Ajay Singh, warning him he will be sent to Tihar jail for non-compliance with its order on making payment to global investment bank and financial services firm Credit Suisse AG.

The top court asked Mr Singh to pay $ 5,00,000 towards an instalment to the Swiss firm along with USD 1 million defaulted amount.

“We have to move to the next drastic step. We are not worried even if you shut down,” a bench of Justices Vikram Nath and Ahsanuddin Amanullah observed.

Irked over the “dilly-dally business”, the bench told Mr Singh he will have to abide by the consent terms and warned, “We are not bothered even if you die. It is too much. We will send you to Tihar jail, if you do not pay.” The court’s fulmination came on Monday when it asked Mr Singh and the company secretary of SpecieJet to be present during the hearings and make the payment. It posted the matter for further hearing on September 22.

According to the Swiss firm, SpiceJet had availed the services of SR Technics, Switzerland, for maintenance, repair, and overhaul of aircraft engines, modules, components, assemblies, and parts, which were mandatory for its operations. An agreement for such services was entered into between SpiceJet and SR Technics on November 24, 2011 for 10 years. The terms of payments were also agreed upon.

SR Technics had given Credit Suisse the right to receive payments from SpiceJet for the services.

The Supreme Court had on July 25 given additional time to SpiceJet to make the payment to Credit Suisse as per the consent terms agreed upon by the two parties.

The top court was hearing a plea by the Swiss firm seeking initiation of contempt proceedings against Singh and SpiceJet over “a wilful and intentional disobedience” of court orders and failure to pay dues as per a settlement between the two sides.

On August 14, the bench while issuing contempt notices to Singh and SpiceJet had noted the submission of the Swiss firm that the court had granted indulgence and withdrawn the airline from liquidation only in view of the consent terms dated May 23, 2022 by which USD 500,000 was to be paid every month by the low cost carrier to the company from July 15, 2020.

“It was submitted that, though as of now more than 6.5 million US dollars has to be deposited, but only a little over 2 million US dollars has been deposited,” the bench had noted the submission of counsel appearing for Credit Suisse in its August 14 order.

SpiceJet and Credit Suisse had told the Supreme Court on August 18, 2022 about the resolution of their financial dispute which led to the withdrawal of an appeal by the low-cost airline against a Madras High Court order for its winding up due to alleged non-payment of dues to the Swiss firm.

“There is a settlement which has taken place on May 23, 2022, as per the consent terms. In view of it, both the parties are satisfied with the settlement and want to withdraw the SLP (special leave petition) filed by the petitioner.

“Accordingly, the application is allowed,” the top court had said in its order.

The court had directed the parties to abide by the consent terms.

On the appeal of SpiceJet, the top court had on January 28, 2022 stayed the publication of the winding up notice and the order directing the official liquidator attached to the Madras High Court to take over the assets of the low-cost airline.

It had also asked SpiceJet to resolve the financial dispute with the Swiss firm.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

New Delhi:

SpiceJet said on Monday it would pay $1.5 million to Credit Suisse as demanded by the Supreme Court. 

Earlier in the day, the Supreme Court ordered SpiceJet to make the payment by September 15 in a case related to unpaid dues and warned the budget airline of unspecified “drastic action” at the next hearing if it failed to do so.

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 that have accrued since last year after the airline failed to keep up with the payment schedule.

If SpiceJet fails to pay, the Supreme Court will take “drastic action” at the next hearing on September 22, it said.

“Enough of this dilly-dally business … We are not bothered even if you die,” one of the two judges said during the hearing, which was attended by SpiceJet chief Ajay Singh.

The airline had previously said the Credit Suisse debt was an old one that predated the tenure of its current management.

Credit Suisse and SpiceJet have been engaged in a legal dispute since 2015 over the bank’s claim of unpaid dues of around $24 million, which led to the Madras High Court’s order that the airline be wound up in 2021.

Even after agreeing to a settlement plan, the dues were not paid, and in March Credit Suisse approached the Supreme Court seeking to initiate contempt proceedings against SpiceJet and Singh over “a wilful and intentional disobedience” of court orders and failure to pay dues of $4.5 million.

The court order is the latest setback for cash-strapped SpiceJet which told a court last month it was “struggling to stay afloat” after it was ordered to pay Rs 100 crores to its former owner, Kalanithi Maran, by September 10 as part of an arbitration order in a separate case.

In that case, also heard on Monday at a Delhi High Court, SpiceJet said it had deposited 625 million rupees of that amount.

The airline said late on Monday it would complete the payment of 1 billion rupees to Mr Maran by Tuesday.