Credit Suisse vs SpiceJet: After Delhi HC, Supreme Court summons Ajay Singh

The situation was exacerbated by the fact that Credit Suisse and SpiceJet had reached a settlement agreement in May 2022 regarding the repayment of dues. Under this settlement, SpiceJet was mandated to pay $500,000 every month towards clearing the outstanding debt.

According to a SpiceJet spokesperson, “A settlement agreement had been reached between SpiceJet and Credit Suisse last year for an amount of $24 million. The debt, it should be noted, is an old one and predates the current Promoter taking over the company.”

The spokesperson added that “SpiceJet could not start the payment as per applicable schedule under the consent terms for a few months till RBI approval came. Till date, SpiceJet has paid a total of $7.1 million to Credit Suisse. The shortfall of $4.4 million pertains to the period when RBI approval was still awaited. The Company intends to pay this ($4.4 million) and the remaining balance amount as per the applicable schedule.”

However, according to the court's observation, while SpiceJet should have paid a cumulative sum of $6.5 million by now, the airline has only managed to pay $2.2 million. This significant divergence from the agreed terms prompted the SC to take action.

In response, the Supreme Court has issued a formal notice against Ajay Singh, demanding his reply within a span of four weeks. The court underscored that under its regulations, the individual in question is required to appear in court unless a specific exemption is granted personally.