SpiceJet Ltd. on Friday through an exchange filing said that it has complied with the directive of the Supreme Court by remitting $1.5 million to Credit Suisse.
The payment was executed on Thursday, September 14th.
The Supreme Court on Monday, August 11, issued a directive to SpiceJet to settle a $1.5 million debt owed to Switzerland's Credit Suisse by September 15 in the ongoing legal dispute.
About the case
According to the Swiss firm, SpiceJet had availed the services of SR Technics, Switzerland, for maintenance, repair, and overhauling of aircraft engines, modules, components, assemblies, and parts, which were mandatory for its operations.
An agreement for such services for 10 years was entered into between SpiceJet and SR Technics on November 24, 2011. The terms of payments were also agreed upon. On August 24, 2012, a supplement pact was also entered into to change certain terms of the agreement.
The amendments included an extension of time for payment of money due under various invoices raised by SR Technics and also a deferred payment scheme. As there was a general increase in the cost, the 2012 supplemental agreement included adjustment of flight hour rates, and escalation provisions were also made.
The Swiss firm had been making repeated requests to SpiceJet to make payments under the various invoices. Since it did not honour its commitment under the agreements with SR Technics and that it was not in a position to meet its financial obligations, the Swiss firm had issued a statutory notice.
As there was no response, it preferred the company petition before the High Court to wind up SpiceJet and obtained a favourable order. Aggrieved, SpiceJet preferred the appeal before the Division bench which came to be dismissed on January 11.
SpiceJet contended it had entered into an agreement with the Swiss company for a period of 10 years in 2011.
SpiceJet Ltd. shares
The shares of SpiceJet Ltd. 9:40 am IST were trading at Rs 39.56, up by 3.07 percent.