New Delhi, Sep 22 (IANS) The Supreme Court on Friday directed SpiceJet (NS: SPJT ) Chairman and Managing Director Ajay Singh to pay $1 million every month to the global investment bank and financial services firm Credit Suisse (SIX: CSGN ) for a period of the next six months.A bench of Justices Vikram Nath and Ahsanuddin Amanullah said that in addition to the regular payment of $500,000 per month, the budget airline will also clear arrears of $3 million in six installments, thus making an effective transfer of $1 million every month to Credit Suisse.
The apex court ordered that it will take up the matter for hearing on October 20 for the purpose of monitoring the compliance and did not dispense with the personal presence of Ajay Singh and Company Secretary Chandan Sand on the next date of listing.
In an affidavit filed before the Supreme Court, Singh has tendered unconditional apology for SpiceJet not being able to meet its obligations under the consent terms in a timely manner.
Last week, Spice had said that it has complied with the apex court’s directive by transferring $1.5 million to Credit Suisse.
In an earlier hearing on September 11, the Supreme Court had issued stern warning to the budget carrier's CMD for defaulting in making the due payments to the global investment bank and financial services firm.
The top court had withdrawn the airlines from liquidation after SpiceJet promised to pay $500,000 to Credit Suisse AG every month. As per the settlement the two parties entered in May last year, which was endorsed by the Supreme Court, SpiceJet is required to pay an amount of $500,000 by the 15th of each month.
After the hearing, the SpiceJet spokesperson issued a statement saying that the Supreme Court has agreed with its proposal to pay the $3 million arrears over the next 6 months after noting compliance with previous orders.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.