Credit Suisse has moved to the India’s top court against SpiceJet alleging contempt of court over the failure of the airline to comply with a court-approved settlement plan for payment of dues.
SpiceJet, however, told the apex court on April 21 that it would pay a tranche the same day and the next in May. According to SpiceJet, the settlement amount is subject to Reserve Bank of India approval, so the airline could not begin payments as per schedule.
The Supreme Court put the contempt plea on hold and will now hear the case on May 17.
In May 2022, SpiceJet Limited and Credit Suisse AG entered into a settlement on a payment dispute. The dispute arose over the non-payment of dues by SpiceJet to Switzerland-based SR Technics, which maintains, repairs and overhauls aircraft for airlines. SpiceJet had defaulted on dues to the tune of $20 million.
This dispute led to the Madras High Court ordering the winding up of SpiceJet. The order was also upheld by a bigger high court bench, which the airline challenged in the Supreme Court
It secured a reprieve from the country's top court, which stayed the order in January 2022. The court asked both sides to settle the dispute instead of litigating over it.
A settlement agreement was drawn up in May 2022 and it required SpiceJet to pay a certain amount upfront and the balance over a mutually agreed timeline.
The settlement was arrived at after SpiceJet’s successfully settled its previous disputes with De Havilland Aircraft of Canada Limited (DHC), Boeing, CDB Aviation, BOC Aviation and Avolon.
