Air carrier SpiceJet has been directed by the Supreme Court to pay $1.5 million to Credit Suisse (SIX:CSGN) by September 15, 2023, as part of an ongoing legal dispute over unpaid dues dating back to 2015. The court warned the budget airline of "drastic action" if it fails to comply with this directive by the next hearing on September 22, 2023.
The payment is a combination of a third of the amount which forms part of a previously agreed monthly settlement plan with Credit Suisse, and the remaining sum that represents unpaid dues that have accrued since last year after SpiceJet's failure to keep up with its payment schedule.
The dispute between Credit Suisse and SpiceJet originated from the bank's claim of unpaid dues amounting to around $24 million. This led to an order from the Madras High Court in 2021 for the airline to be wound up. Despite agreeing on a settlement plan, SpiceJet failed to clear the dues, leading Credit Suisse to approach the Supreme Court in March, seeking to initiate contempt proceedings against the airline and its chief, Mr. Ajay Singh, for "a wilful and intentional disobedience" of court orders and failure to pay dues of $4.5 million.
The latest court order adds to the financial woes of SpiceJet. Last month, the airline informed a court that it was "struggling to stay afloat" after being ordered to pay 1 billion rupees ($12 million) to its former owner, Kalanithi Maran, by September 10 as part of an arbitration order in a separate case. However, during a hearing at the Delhi High Court on Monday, SpiceJet confirmed it had deposited ₹625 million of that amount and would complete the payment of ₹1 billion rupees by Tuesday.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.