SpiceJet-Credit Suisse case: India’s Supreme Court presents Ajay Singh final chance to repay loans

Ajay Singh, the chairman of SpiceJet, was strongly reprimanded by India’s Supreme Court on Monday, ordering him to pay $5,000,000 and $1,000,000 to Credit Suisse in addition to an installment due on September 22, The Economic Times reported.

The court also warnedto send Singh to Tihar jailif the amountwasn’t paid.

“We have to move to the next drastic step. We are not worried if you shut down. Enough of this dilly-dally business… you will have to abide by the consent terms. We are not bothered even if you die. It is too much,” The Economic Times quoted the bench comprising Justices Vikram Nath and Ahsanuddin Amanullah as saying during the hearing.

The court also made it mandatory for Singh to attend the court on every hearing.

Court records indicated that Credit Suisse hadrequested India’s highest court in March to begin contempt proceedings against Singh and SpiceJet for “a willful and intentional disobedience” of court orders and refusal to pay dues totaling several million dollars as per a settlement between the two parties.

Due to a legal battle between Credit Suisse and SpiceJet over Credit Suisse’s supposed $24 million in unpaid debts, the Madras High Court ordered that the airline be shut down in 2021. Following an appeal against the high court’s decision, the top court decided to halt the winding-up process so that both sides may negotiate a settlement.

Both parties notified the Supreme Court that a settlement had been reached in August 2022.

However, Credit Suisse then launched a contempt lawsuit against managing director Ajay Singh in March, claiming that the airline and company secretary had failed to make payments as required by the conditions of the settlement.

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