SC gives Ajay Singh last chance to pay, else face jail in the Credit Suisse case

The Supreme Court asked SpiceJet chairman Ajay Singh to make a payment of $500,000 towards an installment to Credit Suisse by September 22, along with $1 million towards defaulted amount

• The Supreme Court (SC) on Monday asked SpiceJet Chairman Ajay Singh to make a payment of $500,000 towards an installment to Credit Suisse by September 22, along with $1 million towards the defaulted amount.

• The court further said that if the payment is not made, Ajay Singh would be sent to Tihar jail. It has asked Singh to be present at the court on every hearing, according to a report in The Economic Times (ET).

• The court said: “We have to move to the next drastic step. We are not worried if you shut down. Enough of this dilly-dally business… you will have to abide by the consent terms. We are not bothered even if you die. It is too much,” the court said.

• A court filing shows that in March this year, Credit Suisse approached the top court seeking to initiate contempt proceedings against Singh and SpiceJet over “a wilful and intentional disobedience” of court orders and failure to pay dues of several million dollars as per a settlement between the two sides.

• Since 2015, Credit Suisse and SpiceJet have been engaged in a legal dispute over Credit Suisse’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. The SC suspended the winding-up proceedings, and allowed both parties to discuss a settlement, according to the ET report.

• In August 2022, both sides agreed to settle the dispute.

• But in March, Credit Suisse filed a contempt case against Ajay Singh after the airline failed to pay dues as per the terms of the settlement.

Source: Business Standard