SpiceJet-Credit Suisse case: SC threatens to throw SpiceJet CMD into 'Tihar jail' over non-payment of dues to Swiss firm

SpiceJet had availed the services of SR Technics, Switzerland, for maintenance, repair, and overhaul of aircraft engines, modules, components, assemblies, and parts, which were mandatory for its operations.

The Supreme Court has come down hard on SpiceJet Chairman and Managing Director Ajay Singh, warning him he will be sent to Tihar jail for non-compliance with its order on making payment to global investment bank and financial services firm Credit Suisse AG.

The top court asked Singh to pay ₹5,00,000 towards an instalment to the Swiss firm along with ₹1 million defaulted amount.

"We have to move to the next drastic step. We are not worried even if you shut down," a bench of Justices Vikram Nath and Ahsanuddin Amanullah observed.

Irked over the "dilly-dally business", the bench told Mr. Singh that he will have to abide by the consent terms and warned, "We are not bothered even if you die. It is too much. We will send you to Tihar jail, if you do not pay." The court's fulmination came on Monday when it asked Mr. Singh and the company secretary of SpiceJet to be present during the hearings and make the payment. It posted the matter for further hearing on September 22.

In a statement, the airline said, "SpiceJet acknowledges the legal process and is committed to complying with all court's directives and obligations in the Credit Suisse case and will make the payment of ₹1.5 million as per the court directive. Till date, SpiceJet has already paid a total of ₹8 million to Credit Suisse."

"SpiceJet remains committed to the highest standards of transparency and legal compliance. This liability is an old one and predates the current promoter taking over the company," it said.

According to the Swiss firm, SpiceJet had availed the services of SR Technics, Switzerland, for maintenance, repair, and overhaul of aircraft engines, modules, components, assemblies, and parts, which were mandatory for its operations.