SpiceJet has settled the payment dispute with Credit Suisse, the airline informed the Supreme Court on March 31.
The payment dispute with Credit Suisse had formed the basis for the Madras High Court to order winding-up of the airline. This dispute has now been settled, Senior Advocate Mukul Rohatgi, representing SpiceJet, informed the apex court today.
In a statement issued shortly after the court hearing, SpiceJet has said that the "parties have now reached an in-principle commercial settlement of the dispute and the process of documentation is underway."
"The settlement with Credit Suisse follows SpiceJet’s successful settlements with De Havilland Aircraft of Canada Limited (DHC), Boeing, aircraft lessors CDB Aviation and Avolon," the statement issued by the airline adds.
Detailing the transaction arrangement, the airline adds, "SpiceJet had already deposited $5million on the direction of the Hon’ble Madras High Court in the Credit Suisse case and there is no adverse financial liability on the Company. The settlement involves payment of settlement amount over a mutually agreed period of time."
A top court bench headed by Chief Justice of India NV Ramana was hearing a separate dispute between SpiceJet and its former promoter Kalanithi Maran when this disclosure was made.
Maran's case against SpiceJet involves a share-transfer dispute and the media baron is seeking a vacation of the stay imposed on a high court order which directed SpiceJet to pay an interest amount to Maran in line with an arbitration award.
If SpiceJet is wound up, Maran would not be able to secure dues owed to him, his counsel argued before the court. This prompted SpiceJet counsel Rohatgi to apprise the court of the development in the winding-up case.
"We have arrived at a settlement in that case," Rohatgi said.
On January 29, the Supreme Court had granted a three-week breather to SpiceJet and had stayed the Madras High Court's winding-up order against the airline. The court had granted time to SpiceJet to make negotiations in an attempt to settle the dispute with Credit Suisse.
Subsequently, in February, during a hearing on Maran's plea, the court was informed that the talks were on with Credit Suisse and a settlement could be arrived at soon.
The dispute with Credit Suisse concerns non-payment of dues to the tune of $20 million to Switzerland-based SR Technics, which undertakes maintenance, repair and overhauling of Air Craft for airlines.This issue was pressed by Credit Suisse before the Madras High Court which, in December 2021, allowed the winding-up petition against SpiceJet. This order of the single-judge was upheld by a division bench of the high court which brought SpiceJet to Supreme Court in appeal.