Amidst unresolved financial obligations, SpiceJet finds itself under intense scrutiny from the Supreme Court over its failure to clear dues to a global investment bank, Credit Suisse. Amidst this financial tumult, the airline's ambitious bid to take over the operations of another cash-strapped low-cost carrier, Go First, has raised eyebrows and drawn sharp criticism from the bench.

Under scrutiny from the bench comprising Justices Hima Kohli and Ahsanuddin Amanullah, SpiceJet's audacity to pursue such a significant business venture while grappling with unresolved financial obligations has been questioned. The airline's Chairman and Managing Director (CMD), Ajay Singh, has been directed to settle the outstanding dues to Credit Suisse by March 15, with a caution against further legal entanglements.

The urgency of the matter was underscored by Justice Kohli, stating, "Clear up and come back to us. We are giving you a long rope." Justice Amanullah echoed this sentiment, withdrawing Singh's exemption from personal appearance and admonishing SpiceJet for its apparent disregard for financial commitments. He remarked sternly, "Why should we not take judicial notice of a newspaper report... you are trying to scuffle - this is how our economy works?"

The legal imbroglio traces back to SpiceJet's failure to pay dues amounting to $20 million to Swiss aircraft maintenance company, SR Technics. Despite an agreement with Credit Suisse in May 2022 to resolve the payment dispute, subsequent disputes led to the matter escalating to the Supreme Court. In response to a contempt petition filed by Credit Suisse, notices were issued to Singh, alleging backtracking from a court-mandated settlement plan.

In a bid to resolve the protracted dispute, SpiceJet was directed by the Supreme Court in September of the previous year to pay $1 million per month to Credit Suisse for six months. However, as revealed in the recent hearing, SpiceJet has failed to fulfill its obligations fully. The airline purportedly owes $1.25 million in dues, with only $13.75 million cleared out of the $15 million outstanding.

The legal representatives of Credit Suisse argued vehemently against SpiceJet's assertions of mere belated payments, emphasizing the airline's default evident from the timeline provided. Senior Advocates Siddhartha Dave and Liz Mathew represented Credit Suisse, underscoring the urgency of resolving the payment dispute.

On the other hand, SpiceJet, represented by Senior Advocates Kapil Sibal, Shyam Divan, and Vivek Tankha, attempted to defend its position, seeking an extension until March 30 to settle its dues. However, the court rebuffed this request, highlighting the gravity of SpiceJet's default and urging Singh to remain present for future proceedings.

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