The Supreme Court on Monday asked low-cost carrier SpiceJet to clear all outstanding dues by March 15 in the ongoing Credit Suisse case.
“There is no scope of belated payment. The respondent is not justified in saying so. The very fact that the respondent is in default is apparent from the dateline given,” the SC observed.
The SC in September allowed SpiceJet to clear arrears in the airline’s payment to Swiss financial services firm Credit Suisse over a dispute settlement in six months.
The airline was supposed to pay Credit Suisse $500,000 a month towards the arrears, in addition to the scheduled monthly payment of $500,000 that SpiceJet was already making. After clearing the arrears of $3 million over six months, SpiceJet was to continue paying $500,000 towards the monthly instalments, the court had then said.
The apex court also took notice notice of the fact that SpiceJet has bid for bankrupt carrier Go First.
“This is how economy works,” said the SC while asking Ajay Singh to be present before it on March 22, the next date of hearing.
SpiceJet CMD Singh submitted a joint bid for Go First which ceased operations over nine months ago, along with Busy Bee Airways. This development comes amid SpiceJet’s financial challenges, with efforts to secure funds and streamline expenses, including the termination of over 1,000 employees.
“SpiceJet’s role as the operating partner for the new airline involves providing essential staff, services and industry expertise.
“This collaboration is anticipated to generate synergies between the two carriers, leading to improved cost management, revenue growth and a strengthened market position within the Indian aviation industry,” the release said.
