SpiceJet to pay $1.5 mn to Credit Suisse after court order

SpiceJet to pay Credit Suisse $1.5M by Sept. 15 or face "drastic action" from Supreme Court. Airline previously agreed to a settlement plan, but failed to pay dues. SpiceJet also ordered to pay former owner ₹1B by Sept. 10, deposited ₹625M.

Air carrier SpiceJet said on Monday it would pay $1.5 million to Credit Suisse as demanded by the country's top court.

Earlier in the day, the Supreme Court ordered SpiceJet to make the payment by September 15 in a case related to unpaid dues, and warned the budget airline of unspecified "drastic action" at the next hearing on September 22 if it failed to do so.

A third of the amount is part of a monthly settlement plan SpiceJet had previously agreed with Credit Suisse, and the rest are unpaid dues to the bank that have accrued since last year after the airline failed to keep up with the payment schedule.

"Enough of this dilly-dally business ... We are not bothered even if you die," one of the two judges said during the hearing, which was attended by SpiceJet chief Ajay Singh.

SpiceJet did not respond to a request for comment. The airline had previously said the Credit Suisse debt was an old one that predated the tenure of its current management.

Credit Suisse and SpiceJet have been engaged in a legal dispute since 2015 over the bank's claim of unpaid dues of around $24 million, which led to the Madras High Court's order that the airline be wound up in 2021.

Even after agreeing on a settlement plan, the dues were not paid, and in March, Credit Suisse approached the Supreme Court seeking to initiate contempt proceedings against SpiceJet and Mr. Singh over "a wilful and intentional disobedience" of court orders and failure to pay dues of $4.5 million.