Made payment to Credit Suisse in line with court order, SpiceJet tells SC

SpiceJet on Monday informed the Supreme Court (SC) that its Chairman and Managing Director Ajay Singh has made the latest instalment payment to Credit Suisse following a court order.

Credit Suisse informed the court that the payment was five days late, but the court deemed it not a concern as long as the payments were made. However, the court advised Singh to avoid delaying payments in the future.

In September, the SC permitted SpiceJet to pay the Swiss firm $1 million per month for six months to settle its $3 million arrears.

At that time, the low-cost carrier informed the court that it was already making monthly payments of $500,000 to the Swiss firm and sought approval to increase the monthly instalment by an additional $500,000 for six months.

The SC observed that SpiceJet is behind on monthly payments by $3 million and directed the airline to regularise its payments from the seventh month ($500,000).

SpiceJet’s counsel requested the court on Monday to exempt Singh from appearing in the case, but the court stated that it would decide based on the regularised payments in the future.

The next hearing is likely to be in February 2024.

Credit Suisse and SpiceJet have been entangled in a legal conflict since 2015 over outstanding debts of approximately $24 million.

In August 2022, both parties informed the SC of reaching an agreement. However, in March 2023, Credit Suisse initiated a contempt case against Singh and the airline, asserting that SpiceJet had not honoured its payment obligations outlined in the settlement terms.

In 2011, the airline entered into a 10-year contract with Swiss maintenance firm SRT Technics for aircraft servicing. In 2012, SRT transferred its right to recover the payment for maintenance to Credit Suisse.