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This development follows a series of court proceedings involving Ajay Singh, Chairman and Managing Director of SpiceJet. The Supreme Court had previously given Singh another chance to address outstanding financial obligations after the airline failed to meet its previously agreed-upon commitments with Credit Suisse. The court mandated Singh’s presence at all hearings and set a deadline of September 22 for an initial payment of $500,000, while requiring an additional $1 million towards the unsettled amount.
The court’s actions came in response to a contempt notice against Singh, citing SpiceJet’s alleged failure to meet its obligations to Credit Suisse as per the consent terms. The total amount due by SpiceJet was emphasized by the court as $6.5 million. However, the airline had only disbursed slightly more than $2 million, leading Credit Suisse to file a Contempt Plea alleging SpiceJet’s failure to fulfill its financial obligations.
The legal dispute stems from services availed by SpiceJet from SR Technics, Switzerland, for maintenance, repair, and overhauling of aircraft engines, modules, components, assemblies, and parts. An agreement for these services was entered into between SpiceJet and SR Technics on November 24, 2011. A supplemental agreement was added on August 24, 2012, which included an extension of time for payment of money due under various invoices raised by SR Technics and a deferred payment scheme.
Despite repeated requests from the Swiss firm, SpiceJet reportedly failed to honor its commitments under the agreements with SR Technics, leading to the current legal proceedings. The shares of SpiceJet Ltd. were trading at Rs 39.56, up by 3.07 percent as of Friday.
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