SpiceJet is currently dealing with two major legal challenges that could cause trouble for the company.
In one of the cases, SpiceJet is facing off with Credit Suisse. The Supreme Court of India has specifically asked Ajay Singh, chairman and managing director of SpiceJet, to provide proof of deposits of US$500,000 and US$1 million respectively by September 15. The case is scheduled for hearing on September 22, and an affidavit confirming the deposit is required.
A division bench of the Supreme Court issued a warning to Ajay Singh. The court also asked him to attend future hearings along with SpiceJet’s company secretary.
legal challenge
On August 14, the Supreme Court issued a contempt notice against Ajay Singh on Credit Suisse’s plea. Credit Suisse claims the financially strapped airline failed to follow a court-approved settlement plan to pay outstanding payments.
In another legal dispute, SpiceJet is embroiled in a case with media mogul Kalanithi Maran and her family. The Delhi High Court has granted extension till September 12 to the airline and Ajay Singh to settle the remaining amount of the Rs 100-crore arbitration award in favor of the Maran family. The decision was taken on September 11 after Singh’s legal representatives informed the court that they had paid Rs 625 million to Malan and prepared a check for Rs 375 million in Malan’s name.
In 2018, SpiceJet lost an arbitration case related to the transfer of shares by former owner Kalanithi Maran to the company’s new management in 2015.
The legal challenges pose significant hurdles for SpiceJet and its leadership as they navigate the aviation industry’s complex financial and contractual issues. The outcome of these cases will be closely monitored in the coming weeks.
