In a significant development, SpiceJet, the budget airline, has successfully cleared its outstanding dues to Credit Suisse, as disclosed before the Supreme Court. The culmination of this long-standing financial dispute marks a crucial milestone for SpiceJet, potentially paving the way for smoother operations and a restored financial reputation.

The revelation was made during proceedings before a bench presided over by Justices Hima Kohli and Ahsanuddin Amanullah. The case pertained to SpiceJet's failure to settle dues amounting to $20 million owed to the Swiss aircraft maintenance company, SR Technics, with Credit Suisse being involved as a key creditor.

Acknowledging this significant development, the Court has duly noted the resolution of the dispute and has scheduled the matter for further hearing in July. This proactive approach by the judiciary aims to ensure that SpiceJet refrains from any future defaults, thereby upholding financial integrity and accountability within the aviation sector.

This development comes against the backdrop of SpiceJet's involvement in bidding for the operations of another financially challenged low-cost airline, Go First. The Court, during previous hearings, had raised concerns about SpiceJet's capacity to undertake such endeavors while having unsettled financial obligations, especially in the context of its dealings with Credit Suisse.

In a previous instance, the Supreme Court had directed SpiceJet and its Chairman and Managing Director (CMD), Ajay Singh, to clear the outstanding dues by March 15 and cautioned against further legal risks stemming from non-compliance. This directive underscored the seriousness with which the Court viewed SpiceJet's financial responsibilities and its commitment to upholding contractual obligations.

The saga of disputes between SpiceJet and Credit Suisse dates back to May 2022 when both parties initially entered into an agreement to resolve their payment dispute. However, subsequent disagreements led to the escalation of the matter, eventually reaching the apex court.

Credit Suisse had filed a contempt petition against SpiceJet in April 2023, alleging non-compliance with court-mandated settlement plans. This legal tussle intensified in August of the same year when the Supreme Court issued a contempt notice to Ajay Singh, highlighting SpiceJet's alleged backtracking from the agreed-upon settlement terms.

Subsequently, in September 2023, the Supreme Court intervened decisively, directing SpiceJet to make monthly payments of $1 million to Credit Suisse for a period of six months, aimed at clearing the longstanding dues.

Legal representation in this complex case has been robust, with Senior Advocates Siddhartha Dave and Liz Mathew representing Credit Suisse, while Senior Advocates Kapil Sibal, Shyam Divan, and Vivek Tankha have advocated for SpiceJet and Ajay Singh.

In a related legal development, the Delhi High Court, in August 2023, had directed SpiceJet and Ajay Singh to pay ₹100 crore to Kalanithi Maran and his KAL Airways, pursuant to a July 2018 arbitral award mandating a refund of ₹270 crores by SpiceJet.

Case: Credit Suisse AG and Anr vs. Ajay Singh and Anr.