Have settled dispute: SpiceJet, Credit Suisse tell Supreme Court

SpiceJet and Swiss firm Credit Suisse AG informed the Supreme Court on Thursday that they have settled their financial dispute. The court allowed the airline to withdraw its appeal against the Madras High Court’s order asking the company to wind up after it allegedly failed to pay back its dues to the Swiss firm.

The Swiss firm had filed a plea in the high court against the airline for non-payment of over $24 million towards maintenance, repairing, and overhauling of aircraft engines and components in 2013. The apex court had then stayed the high court’s order and told both the parties to settle.

The court remarked on Thursday that both the parties had reached a settlement on May 23 this year, and as per this agreement, they want to withdraw the case from the Supreme Court.

“Accordingly, the application to withdraw is allowed,” said a bench of Chief Justice of India N V Ramana and Justices Hima Kohli and CT Ravikumar.

The court remarked that there is some amount that the airline had deposited with the high court as part of a bank guarantee and said the parties can withdraw this amount as part of the settlement.

The airline had deposited a bank guarantee of $5 million with the Madras High Court.

In 2011, the airline had entered into a 10-year contract with a Swiss maintenance firm SR Technics(SRT) for servicing its aircraft. SRT had then turned over its right to recover the payment for the maintenance to Credit Suisse in 2012.

Credit Suisse had the right to then recover the dues for SRT based on this agreement, which allowed it, as a third party, to recover dues from the airline. The payment was towards seven invoices raised by SRT. After SpiceJet failed to pay some of its dues allegedly, Credit Suisse had filed a plea to recover the amount in the Madras High Court.