- The Supreme Court has come down hard on SpiceJet Chairman and Managing Director Ajay Singh, warning him he will be sent to Tihar jail for non-compliance.
- The Supreme Court asked Ajay Singh to pay $ 5,00,000 towards an installment to the Swiss firm along with a $ 1 million defaulted amount.
- The bench told Mr Singh he would have to abide by the consent terms and warned, “We are not bothered even if you die. It is too much. We will send you to Tihar jail if you do not pay.”
- According to the Swiss firm, SpiceJet had availed the services of SR Technics, Switzerland, for maintenance, repair, and overhaul of aircraft engines, modules, components, assemblies, and parts, which were mandatory for its operations.
- SpiceJet did not make the payment to Credit Suisse as per the consent terms agreed upon by the two parties.
- The Supreme Court had on July 25 given additional time to SpiceJet to make the payment to Credit Suisse as per the consent terms agreed upon by the two parties.
The Supreme Court has come down hard on SpiceJet Chairman and Managing Director Ajay Singh, warning him he will be sent to Tihar jail for non-compliance with its order on making payment to global investment bank and financial services firm Credit Suisse AG.
The top court asked Mr. Singh to pay $ 5,00,000 towards an installment to the Swiss firm along with the USD 1 million defaulted amount.
Annoyed over the “dilly-dally business”, the bench told Mr. Singh he would have to abide by the consent terms and warned, “We are not bothered even if you die. It is too much. We will send you to Tihar jail if you do not pay.” The court’s fulmination came on Monday when it asked Mr Singh and the company secretary of SpecieJet to be present during the hearings and make the payment. It posted the matter for further hearing on September 22.
According to the Swiss firm, SpiceJet had availed the services of SR Technics, Switzerland, for maintenance, repair, and overhaul of aircraft engines, modules, components, assemblies, and parts, which were mandatory for its operations. An agreement for such services was entered into between SpiceJet and SR Technics on November 24, 2011, for 10 years. The terms of payments were also agreed upon. SR Technics had given Credit Suisse the right to receive payments from SpiceJet for the services.
The Supreme Court had on July 25 given additional time to SpiceJet to make the payment to Credit Suisse as per the consent terms agreed upon by the two parties.
On August 14, the bench while issuing contempt notices to Singh and SpiceJet had noted the submission of the Swiss firm that the court had granted indulgence and withdrawn the airline from liquidation only in view of the consent terms dated May 23, 2022, by which USD 500,000 was to be paid every month by the low-cost carrier to the company from July 15, 2020.
SpiceJet and Credit Suisse had told the Supreme Court on August 18, 2022, about the resolution of their financial dispute which led to the withdrawal of an appeal by the low-cost airline against a Madras High Court order for its winding up due to alleged non-payment of dues to the Swiss firm.
The court had directed the parties to abide by the consent terms.
On the appeal of SpiceJet, the top court had on January 28, 2022 stayed the publication of the winding-up notice and the order directing the official liquidator attached to the Madras High Court to take over the assets of the low-cost airline. It had also asked SpiceJet to resolve the financial dispute with the Swiss firm.
(With inputs from agencies)
