Sun group’s chairperson Kalanithi Maran and KAL Airways on Thursday moved Delhi High court against non-payment of 243 crores by SpiceJet. In addition, they have sought attachment of the entire shareholding of Ajay Singh in the airline.
In an earlier order in September, SpiceJet had been ordered by the Delhi High Court to pay Rs 242.93 crore to KAL Airways and Kalanithi Maran, the previous owners, within six weeks. In December 2014, KAL and Maran had transferred their shareholding to Ajay Singh, who is currently the Chairman and Managing Director of the Delhi-based low-cost airline.
“In the event, the amount is not deposited by the judgment debtors (SpiceJet and Another) within the time granted, the decree holders (KAL Airways and Maran) shall be at liberty to revive their prayer seeking directions to the joint debtors to maintain status quo with respect to their shareholding,” said an oral order passed by Justice Rekha Palli on September 2.
The deadline expired on October 14. The amount to be paid is essentially an interest payout of the sum Maran and KAL Airways had won as a refund from an arbitration panel in 2018.
Further, they have submitted in their plea that the period of 6 weeks granted by this Hon’ble Court for making payment of Rs. 242,93,70,845.56 /- in terms of order dated 02.09.2020 expired on 14 October 2020.
The court has now sought a reply from the budget airline and has listed the matter for November 4.
This amount is over and above the Rs 579 crore that SpiceJet has already deposited with the court.
The case relates to 2015, when Maran had dragged SpiceJet to the Delhi high court, demanding that 180 million warrants redeemable as equity shares be transferred to them.
Later, in July 2017, Delhi high court directed SpiceJet to deposit Rs 579 crore in five equal monthly instalments with the court registry. The court also asked KAL Airways and SpiceJet to set up an arbitral tribunal to resolve the issue.
SpiceJet challenged the order in the Supreme Court. However, the apex court on 28 July 2017 rejected SpiceJet’s appeal and directed it to deposit the money as the high court ordered.
As of now, Singh and his family hold 59.93 percent in SpiceJet as of June 30.
SpiceJet, already battered by the Covid19 pandemic, has been facing other legal issues. In July, the airline’s auditor raised doubt on its ability to continue as a going concern as two straight yearly losses have eroded its net worth.
