The Supreme Court (SC) on Friday permitted domestic airline SpiceJet to make payments to Credit Suisse of $1 million per month for a duration of six months to clear arrears amounting to $3 million. Following the completion of the six-month period, Ajay Singh of SpiceJet is required to pay regular instalments of $500,000 to Credit Suisse.
In a statement, the airline commented, "The Hon'ble Supreme Court has acknowledged our compliance with its previous orders and concurred with our proposal to settle the $3 million arrears over the forthcoming six months. This represents a positive outcome for the company and our stakeholders, and we extend our gratitude to the Court for its understanding. We remain steadfast in our commitment to settling our dues fully and punctually. We continue to uphold the highest standards of compliance and look forward to ongoing constructive engagement with all stakeholders."
Last week, SpiceJet announced it had cleared $1.5 million in dues to Credit Suisse. The SCt had previously cautioned Chairman Singh to fulfil the payment obligations or face imprisonment in Tihar Jail.
"SpiceJet Ltd has adhered to the Supreme Court's directive by transferring $1.5 million to Credit Suisse. The transaction was completed on Thursday, 14 September," read the company's earlier statement.
On 12 September, the apex court directed Singh to make a payment of $500,000 towards an instalment to the Swiss firm, in addition to a defaulted amount of $1 million. "We have to proceed to the next severe measure. We remain indifferent even if you cease operations," a bench comprising Justices Vikram Nath and Ahsanuddin Amanullah stated.
Clearly vexed by the procrastination, the bench informed Singh that he must adhere to the agreed terms and issued a warning: "We remain indifferent even if adverse consequences befall you. The situation is untenable. Should you fail to meet your payment obligations, imprisonment in Tihar Jail will ensue."