The Supreme Court has ordered Ajay Singh, Chairman of the beleaguered airlines SpiceJet, to pay a sum of $1 million to Credit Suisse, for the next six months.
SpiceJet will have to pay a total of $3 million, which includes $500,000 each for arrears and regular installments. Singh will also have to be present in the court on the next date of hearing on Oct 20, according to ET.
The news comes after SpiceJet had informed of a completion of a payment of $1.5 million to Credit Suisse last week. Earlier on 11 Sept, the Supreme Court had ordered Singh to pay the outstanding dues to Credit Suisse or face time behind bars in Tihar Jail.
A SpiceJet spokesperson, said that this was a "positive outcome" for the firm and its shareholders.
"We are grateful to the Court for its understanding. We are committed to paying our dues in full and on time. We remain fully committed to upholding the highest standards of compliance and look forward to continuing our positive engagement with all stakeholders,” the spokesperson said.
Credit Suisse asked the top court in March to begin contempt proceedings against Singh and SpiceJet for "a wilful and intentional disobedience" of court orders and failing to pay dues of several million dollars as per a settlement between the two sides.
Since 2015, Credit Suisse and SpiceJet have been involved in a court battle over Credit Suisse's alleged $24 million in unpaid debts, which prompted the Madras High Court to order that the airline be shut down in 2021. The highest court postponed the winding-up procedures following an appeal against the high court's decision, allowing the parties to negotiate a settlement.