Ajay Singh of SpiceJet is given one final chance by the SC to pay or else go to Tihar jail

12 Sep 2023 , 10:53 AM

Ajay Singh, the chairman of SpiceJet, was strongly criticized by the Supreme Court on Monday, which ordered him to pay $5,00,000 to Credit Suisse in addition to an installment due on September 22.

The court also threatened to send Singh to Tihar prison if the money wasn’t paid.

‘We need to take the next bold step. If you stop operating, it won’t worry us. Enough with the waiting around; you must adhere to the consent requirements. Even if you pass away, we won’t be worried. During the hearing, a bench made up of justices Vikram Nath and Ahsanuddin Amanullah said, ‘It is too much.’

Singh has been ordered by the court to appear in person for each hearing.

According to a court document, Credit Suisse asked the top court in March to begin contempt proceedings against Singh and SpiceJet for ‘a wilful and intentional disobedience’ of court orders and failing to pay dues of several million dollars as per a settlement between the two sides.

Since 2015, Credit Suisse and SpiceJet have been involved in a court battle over Credit Suisse’s alleged $24 million in unpaid debts, which prompted the Madras High Court to order that the airline be wound up in 2021. The highest court postponed the winding-up procedures following an appeal against the high court’s decision, allowing the parties to negotiate a settlement.

Both parties notified the supreme court that a settlement had been reached in August 2022.

However, Credit Suisse then launched a contempt lawsuit against managing director Ajay Singh in March, claiming that the airline and company secretary had failed to make payments as required by the conditions of the settlement.

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