SpiceJet Clears Outstanding Dues, Credit Suisse Informs Supreme Court

In a significant development, Credit Suisse informed the Supreme Court on Friday that SpiceJet has successfully cleared all its outstanding dues and is no longer in default.

The bank’s disclosure prompted the court to defer the case to the end of July, where it will monitor SpiceJet’s adherence to timely payment of its monthly installments.

This update comes after the Supreme Court expressed dissatisfaction during the previous hearing over SpiceJet’s failure to settle its dues promptly. At that time, Credit Suisse had revealed that it had only received $13.75 million out of the $15 million owed by SpiceJet by 15 February. Consequently, the court directed the airline to clear all pending payments by 15 March and pay an additional $1.25 million to Credit Suisse by the same date.

During earlier hearings, the court scrutinized reports suggesting that SpiceJet, in collaboration with Busy Bee Aviation Private Limited, had submitted a bid for the bankrupt airline Go First. The court questioned SpiceJet chairman and managing director Ajay Singh’s capacity to finance such acquisitions while neglecting the airline’s overdue payments, warning against further delays.

The legal dispute between Credit Suisse and SpiceJet traces back to November 2011 when SpiceJet, then under the ownership of Kalanithi Maran, entered into a 10-year aircraft servicing agreement with SR Technics, a Swiss MRO service provider. SR Technics subsequently transferred all rights to receive payments from the SpiceJet deal to Credit Suisse in September 2012. However, SpiceJet defaulted on payments exceeding $24 million, leading Credit Suisse to file a winding-up petition against SpiceJet in the Madras High Court in 2021.

In March 2023, Credit Suisse filed a petition to initiate contempt proceedings against SpiceJet and its chairman, alleging deliberate non-compliance with court directives and failure to settle outstanding dues. The court’s recent acknowledgment of SpiceJet’s clearance of its dues marks a significant step forward in resolving this longstanding legal dispute.

 If you like this law news, share it with a friend!