Supreme Court issue contempt notice to SpiceJet's Ajay Singh in Credit Suisse case [14.8.2023]

The Supreme Court issued a contempt notice against SpiceJet Chairman and Managing Director (CMD) Ajay Singh on Monday due to his failure to honour the court-approved payment of dues in the $24 million dispute with Swiss firm Credit Suisse.

Singh has been given four weeks to respond to the notice.

On July 25, the apex court granted the airline additional time to pay its dues to Credit Suisse as part of a court-agreed settlement between the two parties.

"A settlement agreement had been reached between SpiceJet and Credit Suisse last year for an amount of $24 million. The debt, it should be noted, is an old one and predates the current Promoter taking over the company. The payment of the settlement amount was subject to RBI approval. SpiceJet could not start the payment as per applicable schedule under the consent terms for a few months till RBI approval came. Till date, SpiceJet has paid a total of $7.1 million to Credit Suisse. The shortfall of $4.4 million pertains to the period when RBI approval was still awaited. The Company intends to pay this ($4.4 million) and the remaining balance amount as per the applicable schedule," a SpiceJet spokesperson said.

SpiceJet reported a net profit of Rs 205 crore for the first quarter of the current financial year (Q1FY24), according to a BSE filing.

The airline had incurred a net loss of Rs 789 crore in the same period the previous year.

16 Aug 2023