You can bid for Go First but not repay Credit Suisse? Supreme Court pulls up SpiceJet CMD Ajay Singh

The Supreme Court on Monday questioned how SpiceJet could bid to take over operations of another cash-strapped low-cost airline (Go First) when it could not clear its dues to a global investment bank even after initiation of contempt of court proceedings [Credit Suisse AG and anr vs Ajay Singh and anr]..A bench of Justices Hima Kohli and Ahsanuddin Amanullah has now directed the airline and its Chairman and Managing Director (CMD), Ajay Singh, to clear up these dues by March 15, and not take any further risks in the litigation."Clear up and come back to us. We are giving you a long rope," Justice Kohli remarked."Your exemption (from personal appearance) is withdrawn ... We are putting you to notice. Why should we not take judicial notice of a newspaper report four days pack that you are coming with a package to take Go Airlines, and now you have that much of a cushion and will not repay? You are trying to scuffle - this is how our economy works?" Justice Amanullah sternly remarked..The matter will be taken up next on March 22..The case before the Court was connected with Spicejet's failure to pay dues to the tune of $20 million to a Swiss aircraft maintenance company, SR Technics. In May 2022, Spicejet and Credit Suisse entered into an agreement to resolve this payment dispute. However, after disputes arose between Spicejet and the bank, the matter eventually reached the Supreme Court. In August last year, the apex court issued a contempt notice to Singh on a plea filed by Credit Suisse accusing Spicejet of backtracking from a court-mandated settlement plan for the payment of the dues.The Swiss bank had filed the contempt petition against SpiceJet in April 2023.Later, in September that year, the Supreme Court directed SpiceJet to pay $1 million per month to Credit Suisse for 6 months, towards clearing the long-pending dues from the airline company. .On Monday, the counsel for Credit Suisse informed the Court that Spicejet was yet to clear $1.25 million dues that had to be paid by February 15. So far, $13.75 was cleared out of $15 million in dues, the Court was told.The counsel for Spicejet and its CMD countered that there were no arrears in payments, but only belated payments of the tranches. The Court replied that there was no scope for such an argument"That the respondent (Spicejet) is in default is apparent from the datelines provided by the parties. The respondent is cautioned," the Court said, in its order.It also declined a request by Spicejet to let it pay its dues by March 30. "You want an extra 15 days to default?" the Court remarked, while turning down the request. .Senior Advocates Siddhartha Dave and Liz Mathew appeared for Credit Suisse.Senior Advocates Kapil Sibal, Shyam Divan and Vivek Tankha appeared for SpiceJet and Ajay Singh.Singh, who was present in yesterday's hearing, has been asked to continue being present in court..[Read order].On a related note, in August, the Delhi High Court asked SpiceJet and Singh to pay ₹100 crore to Kalanithi Maran and his KAL Airways, in view of a July 2018 arbitral award that called for a refund of ₹270 crores by SpiceJet.