SpiceJet will pay ₹8 crore every month to Credit Suisse
Next hearing on October 20, Supreme Court also ordered the Chairman to appear.
Bhavika Nandwana
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Today, on September 22, the Supreme Court has increased the monthly dues repayment of SpiceJet Airlines, which is facing cash crunch, from $ 5 lakh to $ 1 million. The apex court has ordered the airlines to pay $ 1 million (about ₹ 8 crore) to Credit Suisse every month for the next 6 months.
After 6 months, SpiceJet can pay its dues of 5 lakh dollars every month. Actually, airlines are already paying 5 lakh dollars every month, but Credit Suisse wants the payment of dues to be increased to 1.5 million dollars.
Now the next hearing of this case will be on October 20, in which the court has also ordered SpiceJet Chairman Ajay Singh to appear in the court personally.
Payment of ₹12 crore after Supreme Court warning
Earlier on September 11, the Supreme Court had said that if Chairman Ajay Singh does not make the payment, he will be sent to Tihar (jail). After this, SpiceJet paid 1.5 million dollars (about ₹ 12 crore) to Credit Suisse.
There is an allegation of deliberately not following the terms of consent.
In this case, on August 14, the Supreme Court had issued a contempt notice against Ajay Singh. According to the court filing, Ajay Singh deliberately did not follow the conditions of the consent. Also, he did not pay Rs 199.25 crore despite the court order.
What is the matter?
Spice Jet had signed a 10-year deal with Switzerland-based company SRT Techniques (Credit Suisse) in 2011 for maintenance of aircraft engines. In 2013, Credit Suisse had filed a case against SpiceJet accusing it of not making timely payments.
While hearing the case, Madras High Court had ordered the closure of SpiceJet by 2021. SpiceJet had filed a petition in the Supreme Court against this order of the High Court. After this, the SC had asked both the parties to resolve the matter by mutual consent.
An agreement was signed between Credit Suisse and the airline in May 2022. Under which there was talk of giving about Rs 199 crore to Credit Suisse as advance payment and outstanding payment to SpiceJet within a certain time.
