 "SpiceJet")
In a relief to low-cost carrier Spicejet, the Supreme Court on Tuesday gave additional time to the airline to pay its dues to Swiss firm Credit Suisse as part of the court-agreed settlement between both parties.
The hearing, on Credit Suisse's contempt plea, will now come up in the third week of August.
Click here to connect with us on WhatsApp
Senior Advocate Niranjan Reddy, appearing for Credit Suisse, told the court that when they filed the contempt plea, the amount outstanding was $3.9 million, however it has now increased to $4 million after Spicejet skipped an installment.
Senior Advocate Shyam Divan, appearing for the CMD of SpiceJet Ajay Singh, told the court that they will continue paying $500,000 on the 15th of every month.
Divan informed the court that SpiceJet has paid more that 160 million dollars to Credit Suisse so far. He also told the court that he will speak to his clients to see if they could increase the monthly installment to an amount more than $500,000.
In 2011, the airline company had entered into a 10-year contract with a Swiss maintenance firm SRT Technics for the servicing of its aircraft. SRT had then turned over its right to recover the payment for the maintenance to Credit Suisse in 2012.
More From This Section
Credit Suisse had the right to then recover the dues for SRT based on this agreement which allowed it, as a third party, to recover the dues from the airline. The payment was towards seven invoices raised by SRT. After Spicejet failed to pay some of its dues allegedly, Credit Suisse had filed a plea to recover the amount in the Madras High Court.
The Swiss firm had filed a plea in the High Court against the airline for non-payment of over $24 million towards maintenance, repairing, and overhauling of the aircraft engines and components in 2013. The apex court had then stayed the High Court’s order to wind up the airline company and told both the parties to settle.
