SpiceJet (SG, Delhi International) has abided by a court-imposed ruling to pay INR1 billion Indian rupees (USD12.1 million) to the carrier's former majority owner, Kalanithi Maran. The payment was made in two tranches earlier this week, finalising on September 12, two days after the September 10 deadline laid down by Delhi High Court.

The low-cost carrier and its current majority owner and promoter, Ajay Singh, was ordered in August to make the payment, which comprises less than one-third of the INR3.8 billion (USD45.8 million) owed to Maran and his associated corporate entity, KAL Airways. SpiceJet paid INR775 million (USD9.3 million) on September 11 and INR225 million (USD2.8 million) the following day.

During an August 24 hearing, SpiceJet was told to make the INR1 billion payment by September 10 or risk asset seizure. In court on September 11, one day after the deadline had passed, the court gave SpiceJet 24 hours to complete the process. SpiceJet said the payments were slightly late due to bank holidays in India on September 9 and 10.

The debt to Maran and KAL Airways relates to the 2015 majority ownership transfer between Maran and Singh. Warrants and preference shares promised to Maran did not materialise. The INR3.8 billion owed, now reduced to INR2.8 billion (USD33.7 million), comes from compounding interest on the (now settled) original debt. In late July, after a series of court challenges and ignored deadlines, the Delhi High Court ordered payment in full. The matter next comes up for hearing on October 3.

Separately, SpiceJet confirmed that it will abide by an order made by the same court on September 11 to pay Credit Suisse AG USD1.5 million by September 22. “SpiceJet acknowledges the legal process and is committed to complying with all court directives and obligations in the Credit Suisse case and will make the payment of USD1.5 million as per the court directive," a SpiceJet spokesperson said in a statement. The airline later said it remitted full payment on September 14.

The court had warned Singh, who was required to appear in person this week, that he would go to jail if the payment was not made. As of March, SpiceJet owed Credit Suisse USD6.5 million in relation to an MRO contract last decade. In addition to seeking payment, the financial institution has attempted to have contempt charges imposed on Singh after SpiceJet ignored an earlier series of court orders and repayment agreements.