The Supreme Court on Monday directed SpiceJet chairman and managing director, Ajay Singh to furnish proof of deposit of $500,000 and $1 million by September 15, to Credit Suisse. A two judge bench warned Singh of ‘drastic measures’ if he does not comply with the order, and has asked him to be present in future hearings, along with SpiceJet’s company secretary.
During the course of the hearing, the court orally observed that there is a clear contempt of court on Singh’s part as he has not followed the terms of the May 2022 order. The case will be next heard on September 22.
Credit Suisse had in March approached SC seeking to initiate contempt proceedings against Singh and SpiceJet over a wilful and intentional disobedience of court orders and failure to pay dues of several million dollars as per a settlement between the two sides.
SpiceJet and Credit Suisse have been engaged in a legal dispute since 2015 over the latter’s claim of unpaid dues of around $24 million, which led to the Madras High Court’s order that the airline be wound up in 2021. In an appeal against the HC’s order, the SC had suspended the winding-up proceedings, allowing both parties to discuss a settlement.
In August 2022, both sides had informed the SC that they had agreed to settle the dispute. But subsequently, in March Credit Suisse filed a contempt case against Singh, saying that they had failed to pay dues as per the terms of settlement.
Meanwhile, in a separate case, the Delhi High Court on Monday asked SpiceJet and Singh to pay remaining Rs 32.5 crore by end of Monday or maximum by Tuesday. Singh’s lawyers told the court that they have paid Maran Rs 62.5 crore already and also have a cheque for Rs 37.5 crore in Maran’s name.