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SpiceJet is currently dealing with two significant legal challenges that may pose a trouble for the company.
In one of these cases, SpiceJet is facing off against Credit Suisse. The Supreme Court of India has issued a firm demand for Ajay Singh, SpiceJet’s Chairman and Managing Director, to provide proof of depositing $500,000 and $1 million by September 15. The case is scheduled for a hearing on September 22, and an affidavit confirming the deposit is required.
A division bench in the Apex Court has issued a warning to Ajay Singh. The court has also mandated his presence at future hearings, along with SpiceJet’s company secretary.
Legal challenges
On August 14 the Supreme Court issued a contempt notice against Ajay Singh in response to a plea from Credit Suisse. Credit Suisse alleges that the financially strained airline has not followed a court-approved settlement plan for paying its outstanding dues.
In a separate legal dispute, SpiceJet is entangled in a case with media magnate Kalanithi Maran and his family. The Delhi High Court has granted the airline and Ajay Singh an extension until September 12 to settle the remaining amount of a ₹100 crore arbitral award in favor of the Maran family. This decision was made on September 11 after Singh’s legal representative informed the court that they had already paid ₹62.5 crore to Maran and had prepared a ₹37.5 crore cheque in Maran’s name.
In 2018 SpiceJet lost an arbitration case arising out of share transfers from former owner Kalanithi Maran to the company’s new management in 2015.
These legal challenges are posing significant hurdles for SpiceJet and its leadership as they navigate complex financial and contractual issues within the airline industry. The outcomes of these cases will be closely monitored in the coming weeks.
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