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Low-cost carrier SpiceJet on Friday said it has made a payment of $1.5 million to Credit Suisse, following orders from the Supreme Court.
The payment was executed on Thursday, according to a filing with the stock exchanges.
In an earlier statement, the airline had said, “SpiceJet acknowledges the legal process and is committed to complying with all court's directives and obligations in the Credit Suisse case and will make the payment of $1.5 million as per the court directive. Till date, SpiceJet has already paid a total of $8 million to Credit Suisse."
Switzerland-based Credit Suisse had filed a plea with the apex court in March to initiate contempt proceedings against SpiceJet and its chairman and managing director Ajay Singh, citing alleged deliberate and intentional non-compliance with court orders and failure to settle a $3.9 million debt as stipulated in a prior settlement agreement between the parties.
Back in November 2011, SpiceJet, then owned by Kalanithi Maran, had signed a 10-year aircraft servicing and maintenance agreement with SR Technics, a Swiss maintenance, repair and overhauling (MRO) service provider.
The Swiss firm issued invoices, while SpiceJet issued seven bills of exchange to cover the debt. In September 2012, SR Technics formally gave Credit Suisse all rights to receive payments under the SpiceJet deal.
However, the airline failed to make payments of over $24 million, prompting Credit Suisse to file a winding-up petition against SpiceJet in the Madras High Court in 2021.
On 6 December 2021, a single-judge bench of the Madras High Court allowed the winding-up of SpiceJet under Section 433 (e) of the Companies Act 1956, and directed the official liquidator to take over the assets of the airline.
The airline had challenged the order before a division bench. The division bench upheld the single judge’s order.
The airline had then challenged the ruling in the Supreme Court, which stayed the high court order, and gave the company three weeks to settle the matter.