Credit Suisse, the Swiss bank facing financial difficulties, has taken legal action against SpiceJet in the Supreme Court, accusing the domestic carrier of failing to comply with a court-approved settlement plan for payment of dues.
SpiceJet has since informed the apex court that it will make payments on April 21 and May. The contempt plea has been put on hold by the Supreme Court, which has set the hearing date for May 17.
Credit Suisse and SpiceJet Supreme Court Case
In May 2022, SpiceJet Limited and Credit Suisse AG came to a settlement over a payment dispute concerning the non-payment of dues by SpiceJet to SR Technics. This Switzerland-based company handles aircraft maintenance and repair for airlines. The dues had amounted to $20 million.
As a result of this dispute, the Madras High Court ordered the winding up of SpiceJet, a decision later affirmed by a larger bench. However, SpiceJet appealed this decision to the Supreme Court, reported Moneycontrol.
The Supreme Court granted a stay order in January 2022, providing SpiceJet with temporary relief from the high court’s ruling. Instead of litigation, the court requested both parties to resolve the payment dispute.
In May 2022, SpiceJet and Credit Suisse reached a settlement agreement over a payment dispute. Which stipulated that SpiceJet would make an initial payment. Furthermore, the balance would be paid over a mutually agreed timeline.
The agreement was reached following SpiceJet’s successful resolution of prior disputes with De Havilland Aircraft of Canada Limited, Boeing, CDB Aviation, BOC Aviation, and Avolon.
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