The Supreme Court of India has granted Ajay Singh, CEO of SpiceJet, another opportunity to settle outstanding dues amounting to $6.5 million to Credit Suisse (SIX:CSGN). The court ordered Singh on Monday to be present at all future hearings and make a payment of $500,000 by September 22, along with an additional $1 million towards the defaulted amount.
This decision comes in response to SpiceJet's failure to adhere to the terms agreed upon with Credit Suisse. The airline had only managed to pay a fraction of its obligation, totaling just over $2 million. This discrepancy led Credit Suisse to file a Contempt Plea against SpiceJet for allegedly failing to honor its financial commitments.
The Supreme Court issued a contempt notice against Ajay Singh due to this alleged failure. "We are not worried if you shut down. You will have to abide by the consent terms. We are not bothered even if you die. The next step will be drastic," the Court warned.
The situation is further complicated by a settlement agreement reached between Credit Suisse and SpiceJet in May 2022. Under this settlement, SpiceJet was required to make monthly payments of $500,000 to clear the outstanding debt.
The court also issued a directive on Monday asking Singh to provide evidence of the aforementioned deposits by September 15, in the ongoing legal dispute with Credit Suisse. The case is scheduled for a hearing on September 22 and requires an affidavit confirming compliance.
A two-judge bench of the Supreme Court warned Singh that failure to comply with the court's order could result in his being sent to Tihar jail on the next court date. The court also mandated his presence in future hearings, along with SpiceJet's company secretary.
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