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Business News/ Companies / News/  SpiceJet-Credit Suisse case: Supreme Court summons Ajay Singh for personal appearance
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SpiceJet-Credit Suisse case: Supreme Court summons Ajay Singh for personal appearance

SpiceJet-Credit Suisse case: Supreme Court summons Ajay Singh for personal appearance

Ajay Singh, Chairman and Managing Director of Indian budget airline SpiceJet,(FILE PHOTO) (REUTERS)Premium
Ajay Singh, Chairman and Managing Director of Indian budget airline SpiceJet,(FILE PHOTO) (REUTERS)

Supreme Court on Monday has asked SpiceJet's managing director Ajay Singh to respond to a contempt case by Credit Suisse within four weeks, a lawyer involved in the case told Reuters.

Credit Suisse and SpiceJet have been engaged in a legal dispute since 2015 over Credit Suisse's claim of unpaid dues of around $24 million, which led to the Madras High Court's order that the airline be wound up in 2021.

SpiceJet in a statement said the debt is an "old one and predates the current promoter taking over the company," and that it intends to pay the amount.

In an appeal against the high court order, the top court suspended the winding-up proceedings, allowing both parties to discuss a settlement.

In August 2022, both sides informed the top court that they had agreed to settle the dispute.

But subsequently, in March, Credit Suisse filed a contempt case against managing director Ajay Singh, with the company secretary and the airline saying they had failed to pay dues as per their agreement.

Meanwhile, shares of SpiceJet on Monday jumped nearly 7 per cent after the company reported a net profit of 205 crore for the June quarter helped by strong air travel demand.

The stock climbed 6.72 per cent to settle at 33.67 on the BSE. During the day, it rallied 11.56 per cent to 35.20.

A total of 173.81 lakh shares of the company were traded on the BSE during the day.

The airline, which is facing multiple headwinds, had recorded a net loss of 789 crore in the year-ago period.

In a release, SpiceJet said the profit of 205 crore was on account of "strong demand for air travel in India".

"Total operating revenue for the June quarter was 2,002 crore as against 2,457 crore in the same quarter of the previous year," it said.

SpiceJet Chairman and Managing Director Ajay Singh said despite facing multiple challenges, the airline posted a profit in the first quarter of the current financial year.

On Monday, the 30-share BSE Sensex climbed 79.27 points or 0.12 per cent to settle at 65,401.92 points. During the day, it fell 500.77 points or 0.76 per cent to 64,821.88 points.

*With agency inputs

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Published: 14 Aug 2023, 04:38 PM IST
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