India's SpiceJet airline's chief faces contempt case over unpaid dues

NEW DELHI, Aug 14 (Reuters) - Indias top court has asked Indian airline SpiceJets (SPJT.NS) managing director Ajay Singh to respond to a contempt case by Credit Suisse within four weeks, a lawyer involved in the case told Reuters.

Credit Suisse in March 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 $3.9 million as per a settlement between the two sides, a court filing shows.

Credit Suisse and SpiceJet have been engaged in a legal dispute since 2015 over Credit Suisses claim of unpaid dues of around $24 million, which led to the Madras High Courts order that the airline be wound up in 2021.

SpiceJet in a statement said the debt is an \“old one and predates the current promoter taking over the company,\” and that it intends to pay the amount.

In an appeal against the high court order, the top court suspended the winding-up proceedings, allowing both parties to discuss a settlement.

In August 2022, both sides informed the top court that they had agreed to settle the dispute.

But subsequently, in March, Credit Suisse filed a contempt case against managing director Ajay Singh, with the company secretary and the airline saying they had failed to pay dues as per their agreement.

The top court has asked Singh to be present in the next hearing.