SpiceJet's Legal Turbulence Ends: Airline No Longer In Default; SC To Hear Credit Suisse Plea After 3 Months

SpiceJet's Legal Turbulence Ends: Airline No Longer In Default; SC To Hear Credit Suisse Plea After 3 Months

The court has scheduled a follow-up hearing in three months' time to ensure that SpiceJet remains current with its financial obligations and does not default on future payments.

Oliviya KunjumonUpdated: Friday, March 22, 2024, 12:25 PM IST
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SpiceJet | File

The Supreme Court on Friday said that SpiceJet Ltd has settled its outstanding dues to Credit Suisse, putting an end to the legal dispute between the two parties. The apex court, which was overseeing the case, announced that SpiceJet is no longer in default as of the present date.

Settlement Recap

Previously, the Supreme Court had set a deadline for SpiceJet to clear its dues to Credit Suisse by March 15, following an order issued on February 19. Under the court's directive in September of the previous year, SpiceJet's chairman, Ajay Singh, was instructed to make monthly payments of USD 1 million (approx. Rs 6.5 crore) to Credit Suisse for a duration of six months. This sum included both regular monthly payments and clearing of arrears totaling USD 3 million.

Ongoing Monitoring and Future Payments

While addressing SpiceJet's compliance with the current settlement, the Supreme Court has decided to maintain vigilance over the situation. The court has scheduled a follow-up hearing in three months' time to ensure that SpiceJet remains current with its financial obligations and does not default on future payments.

Past Dispute and Legal Proceedings

The dispute between SpiceJet and Credit Suisse dates from alleged non-payment of invoices by the airline. Credit Suisse had initiated legal action, seeking the winding up of SpiceJet due to non-payment of dues. Although the Madras High Court initially ruled in favor of Credit Suisse, the Supreme Court intervened, staying the order and urging both parties to seek an amicable resolution.

SpiceJet shares

The shares of SpiceJet on Friday at 12:18 pm IST were at Rs 60.35, up by 1.30 per cent.

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