Credit Suisse Files Contempt Plea Against SpiceJet

A bench led by judges A.S. Bopanna and Hima Kohli did not issue any notice to the airline, but agreed to hear the matter on 17 May. The two companies settled a long-pending dispute and reached consent terms in May 2022, according to the petition.

According to SpiceJet, the settlement amount is subject to Reserve Bank of India approval, so the airline could not begin payments as per schedule. It told the court it made the April payment on schedule and that the payment for May shall also be made as per schedule.

The case has its origins in November 2011, when the Ajay Singh-led airline signed a 10-year aircraft servicing and maintenance agreement with SR Technics, a Swiss maintenance, repair and overhauling (MRO) service provider.

The Swiss firm issued invoices, while SpiceJet issued seven bills of exchange to cover the debt. In September 2012, SR Technics formally gave Credit Suisse all rights to receive payments under the SpiceJet deal. However, the airline failed to make payments of over $24 million, prompting Credit Suisse to file a winding-up petition against SpiceJet in the Madras High Court in 2021.

On 6 December 2021, a single-judge bench of the Madras High Court allowed the winding-up of SpiceJet under Section 433 (e) of the Companies Act 1956, and directed the official liquidator to take over the assets of the airline. The airline challenged the order before a division bench. The division bench upheld the single judge’s order. The airline then challenged the ruling in the Supreme Court, which stayed the high court order, and gave the company three weeks to settle the matter. However, the final settlement took longer.