‘Supreme’ blow to Spice Jet, order to pay 1 million dollars per month to Credit Suisse for six months
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New Delhi (Uttam Hindu News): The Supreme Court on Friday ordered Ajay Singh, chairman and managing director of low-cost airline SpiceJet, to pay $1 million every month for the next six months to global investment bank and financial services firm Credit Suisse. Gave instructions.
A bench of Justices Vikram Nath and Ahsanuddin Amanullah said that in addition to the regular payment of $5 lakh per month, the airline will also pay the dues of $30 lakh in six instalments. Thus, an effective transfer of $1 million every month will be made to Credit Suisse.
The apex court ordered that it will hear the case on October 20 for the purpose of monitoring compliance. He did not exempt Ajay Singh and company secretary Chandan Sand from personal appearance in the next hearing. In an affidavit filed before the Supreme Court, Singh has tendered an unconditional apology for SpiceJet’s failure to timely fulfill its obligations under the agreed terms.
SpiceJet had last week said it had complied with the apex court’s direction by transferring $1.5 million to Credit Suisse. Earlier in the hearing on September 11, the Supreme Court had issued a stern warning to the CMD of the company for defaulting in paying dues to the global investment bank and financial services firm.
The apex court had withdrawn the airline from liquidation after SpiceJet promised to pay $5 lakh every month to Credit Suisse. According to the agreement reached between the two parties in May last year, which was upheld by the Supreme Court, SpiceJet will have to pay an amount of five lakh dollars by the 15th of each month.
After the hearing, a SpiceJet spokesperson issued a statement saying that the Supreme Court has agreed to its proposal to pay the dues of $3 million in the next six months, keeping in mind the compliance with the previous orders.
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