India's SpiceJet airline's chief faces contempt case over unpaid dues

Spicejet

14/08/2023 12:51

By Arpan  Chaturvedi
       NEW DELHI, Aug 14 (Reuters) - India's top court has
asked Indian airline SpiceJet's  SPJT.NS  managing director Ajay
Singh to respond to a contempt case by Credit Suisse within four
weeks, a lawyer involved in the case told Reuters.
    Credit Suisse in March approached the top court seeking to
initiate contempt proceedings against Singh and SpiceJet over "a
wilful and intentional disobedience" of court orders and failure
to pay dues of $3.9 million as per a settlement between the two
sides, a court filing shows.
    Credit Suisse and SpiceJet have been engaged in a legal
dispute since 2015 over Credit Suisse'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.
    SpiceJet in a statement said the debt is an "old one and
predates the current promoter taking over the company," and that
it intends to pay the amount.    
    In an appeal against the high court order, the top court
suspended the winding-up proceedings, allowing both parties to
discuss a settlement.
    In August 2022, both sides informed the top court that they
had agreed to settle the dispute. 
    But subsequently, in March, Credit Suisse filed a contempt
case against managing director Ajay Singh, with the company
secretary and the airline saying they had failed to pay dues as
per their agreement.         
    The top court has asked Singh to be present in the next
hearing.

 (Reporting by Arpan Chaturvedi
Editing by Bernadette Baum)
 ((Arpan.Chaturvedi@thomsonreuters.com;))