SpiceJet, an Indian airline, has a debt of millions of dollars to Switzerland’s bank. Recently, the Supreme Court of India warned the airline to pay their dues to the bank, otherwise, they will face drastic action.
SC Warns SpiceJet To Pay Their Debt Owed To Switzerland’s Bank
The airline company SpiceJet was ordered by the Supreme Court on Monday to pay a $1.5 million debt to the Credit Suisse bank in Switzerland by September 15. In addition, the court warned of “drastic action” if the payment was not received on time. According to Reuters, a third of the sum is made up of overdue bank debts, the remainder is a monthly compensation plan that SpiceJet and Credit Suisse previously agreed upon.
In March, Credit Suisse asked the Supreme Court to begin contempt proceedings against the airline and its founder, Ajay Singh. This action was brought as a result of allegedly willful and intentional disregard for court orders as well as a failure to pay a debt of $3.9 million as specified in an earlier settlement agreement between the parties. These details are provided in a court document.
Legal Conflict Between The Airline & Bank
According to Reuters, SpiceJet’s response to a request for comment was delayed. SpiceJet has argued that the disputed debt is an older obligation that was created before the current management took office. The legal conflict between Credit Suisse and SpiceJet began in 2015 and is primarily focused on Credit Suisse’s claim of outstanding debts of about $24 million.
The Madras High Court ultimately issued a court judgement mandating the airline’s closure in 2021 as a result of this disagreement. The High Court’s winding-up judgement was appealed, and the Supreme Court temporarily paused the liquidation process. Due to this ruling, Credit Suisse and SpiceJet were able to start negotiations with the goal of reaching a settlement.
Besides this, on Monday, SpiceJet notified the Delhi High Court that it has paid Sun Group chairman Kalanithi Maran ₹62.5 crores out of the ₹100 crores that were owed to him in connection with the execution of the arbitral judgement.
Depending on banking hours, the airline hopes to pay the chairman the remaining ₹37.5 crore.
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