New Delhi: India’s top court on Monday directed budget airline SpiceJet to pay $1.5 million in a case related to unpaid dues to Credit Suisse by Sept. 15 and warned of “drastic action” if it fails 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.
Credit Suisse in March approached the Supreme Court seeking to initiate contempt proceedings against SpiceJet and its founder Ajay Singh over “a wilful and intentional disobedience” of court orders and failure to pay dues of $3.9 million as per a settlement between the two sides, a court filing shows.
SpiceJet did not immediately respond to a request for comment. The airline has said the debt was an old one which predated the tenure of its current management.
Credit Suisse and SpiceJet have been engaged in a legal dispute since 2015 over Credit Suisse’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.
In an appeal against the high court order, the top court suspended the winding-up proceedings, allowing both parties to discuss a settlement.
(Reporting by Arpan Chaturvedi and Aditi Shah, additional reporting by Aditya Kalra; Editing by Himani Sarkar and Miral Fahmy)
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