Supreme Court to Ajay Singh — You have money to buy an airline, but not to pay Credit Suisse?

The Supreme Court on Tuesday (February 20) expressed its frustration at the delay by SpiceJet to its creditor Credit Suisse, directing the airline to cough up $1.25 million by March 15, 20224.

The apex court was hearing a plea by Credit Suisse seeking payment of dues by SpiceJet. In the latest leg of payments, the Supreme Court had directed SpiceJet in September 2023, to repay $1 million every month till March of 2024.

Credit Suisse claimed that SpicJet had not adhered to the payment schedule and was in default. SpiceJet argued that it was not in default, but the payments were only delayed a little.

The Supreme Court, however, did not look kindly on SpiceJet’s reasoning. The apex court stood firm on the payment schedule prescribed and refused any extension of time.

The apex court even reflected on the recent bid by SpiceJet chief executive officer (CEO) Ajay Singh for the battered airline GoFirst, currently under the IBC framework. Supreme Court taunted Ajay Singh by asking how SpiceJet could default on payments when he had the comfort of bidding for a new airline.

The apex court has now directed SpiceJet to pay $1.25 million by March 15. Supreme Court will review the status of payments, in the next hearing, scheduled for March 22, 2024.

Shares of SpiceJet Ltd ended at ₹68.18, down by ₹0.90, or 1.30% on the BSE.