Supreme Court Orders SpiceJet Chairman to Pay ₹12.45 Crore by September 22nd or Face Jail Time
Today, which is September 11th, the Supreme Court has directed SpiceJet’s Chairman, Ajay Singh, to deposit ₹12.45 crore in the credit suits case. This includes ₹4.15 crore ($5 million) as a weekly installment and a default amount of ₹8.29 crore. He has been given time until September 22nd to comply.
The court also stated that if he does not make the payment, he will be sent to Tihar Jail.
The court stated, “Pay money in any settlements.” Justices Vikram Nath and Ahsanuddin Amanullah had heard the credit suits case from 2015. The judges mentioned, “These (cases) have been going on for a long time; now we will have to take strict action.” While SpiceJet may face shutdown or closure, there is no exception for us, but Ajay Singh will have to accept the terms and conditions. The court also ordered Ajay Singh to be present for every hearing in the court.
Allegations of Non-Compliance with Consent Terms
In this matter, on August 14th, the Supreme Court issued a notice against Ajay Singh for alleged non-compliance with consent terms. According to court filings, Ajay Singh had reportedly not adhered to the conditions of consent. Furthermore, he had not paid 199.25 crore rupees as per the court’s orders.
What is the Entire Case About?
In 2011, SpiceJet entered into a 10-year deal with Swiss-based company SRT Technics (Credit Suisse) for the maintenance of aircraft engines. In 2013, Credit Suisse accused SpiceJet of failing to make timely payments and filed a case against them.
Amidst the litigation, the Madras High Court had ordered SpiceJet to be grounded until 2021. SpiceJet had appealed this order in the Supreme Court. Subsequently, the Supreme Court directed both parties to settle the matter amicably.
A settlement was reached between Credit Suisse and the airline in May 2022. Under this settlement, SpiceJet was to make an advance payment and settle the remaining dues, totaling around 199 crore rupees, to Credit Suisse within a specified period.
