SpiceJet’s CEO is reprimanded by the SC for unpaid dues: “Not bothered even if you die”
The Supreme Court has severely criticized Ajay Singh, the chairman and managing director of SpiceJet, and threatened to sentence him to Tihar Prison if he does not comply with its order to pay the international investment bank and financial services business Credit Suisse AG. What happened to the SpiceJet CEO is detailed below.
The top court mandated that SpiceJet CEO Singh pay a $ 5,000,000 installment as well as $ 1,000,000 in back payments to the Swiss corporation.
“We must go forward with courage. We won’t be bothered even if you shut down, a bench of Justices Vikram Nath and Ahsanuddin Amanullah said.
Singh received criticism from the bench for his “dilly-dally business” and was given the stern warning that they wouldn’t care if he died. It is too much. We’ll send you to Tihar jail if you don’t pay.
On Monday, the court ruled against Singh and SpiceJet’s corporate secretary, requiring them to appear in court and provide the necessary funds. It scheduled a follow-up hearing on September 22.
SpiceJet said in a statement: “SpiceJet respects the legal system, is committed to upholding all court directives and obligations in the Credit Suisse litigation, and will pay the $ 1.5 million as directed by the court. SpiceJet has already disbursed $8 million to Credit Suisse.
“SpiceJet is committed to the highest standards of legal compliance and transparency. This requirement was in place before the current promoter took over management of the company, it said.
The Swiss business asserts that SpiceJet utilized SR Technics, Switzerland, to service, refurbish, and repair aircraft engines, modules, components, assemblies, and parts that were crucial to its operations.
SpiceJet and SR Technics agreed to a ten-year contract for these services on November 24, 2011. In addition, the terms of payment were agreed upon.
SR Technics authorized Credit Suisse to get payments from SpiceJet for the services.
SpiceJet’s payment deadline to Credit Suisse was extended by the Supreme Court on July 25 in accordance with the terms of the parties’ agreement.
