Ajay Singh, the chairman and managing director of SpiceJet, has received harsh criticism from the Supreme Court, which has threatened…
Ajay Singh, the chairman and managing director of SpiceJet, has received harsh criticism from the Supreme Court, which has threatened to send him to Tihar Prison for disobeying its directive to pay the international investment bank and financial services company Credit Suisse AG. Here is what happened to the SpiceJet chief.
The highest court ordered SpiceJet chief Singh to pay the Swiss company $ 5,00,000 as an installment as well as $ 1 million in arrears.
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“We need to take the next bold step. Even if you shut down, we won’t be concerned, a bench of Justices Vikram Nath and Ahsanuddin Amanullah stated.
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The bench chastised Singh for the “dilly-dally business” and warned him that they wouldn’t care if he passed away. It is excessive. If you don’t pay, we’ll send you to Tihar prison.
The court’s condemnation came on Monday when it ordered Singh and SpiceJet’s company secretary to attend the hearings and submit the required amount. On September 22, it set the subject for a subsequent hearing.
The airline issued the following statement: “SpiceJet recognises the legal process, is dedicated to adhering to all court orders and duties in the Credit Suisse lawsuit, and will pay the $ 1.5 million as ordered by the court. SpiceJet has already given Credit Suisse a total of $ 8 million to date.
“SpiceJet is still dedicated to the greatest levels of legal compliance and openness. This obligation is old and existed before the present promoter took control of the business,” it stated.
The Swiss company claims that SpiceJet used SR Technics, Switzerland, to maintain, repair, and overhaul aircraft engines, modules, components, assemblies, and parts that were essential to its operations.
On November 24, 2011, SpiceJet and SR Technics signed a ten-year deal for these services. Additionally, the payment conditions were agreed upon.
Credit Suisse was granted permission by SR Technics to collect payments from SpiceJet for the services.
On July 25, the Supreme Court had extended SpiceJet’s deadline for paying Credit Suisse in accordance with the conditions of the parties’ consent.
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