BackHC directs BSE to decide on warrants to Kalanithi Maran and KAL Airways
BSE asked to apprise the court of its decision by 26 April
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New Delhi: The Delhi High court on Thursday directed BSE to decide on the issue of warrants to Kalanithi Maran and KAL Airways Pvt. Ltd, to resolve a dispute triggered by the change of ownership of Spicejet in January 2015.
Justice Manmohan Singh who was hearing the case has asked BSE to apprise the court of its decision by 26 April.
Counsels for Kalanithi, KAL Airways and Spicejet informed the court that in consonance with the court’s’ order of 15 March, they had jointly approached the BSE for an approval on the board resolution within the time-frame laid down and that BSE was yet to take a decision in this regard.
On 15 March, the Delhi high court had directed SpiceJet to pass a board resolution within three days authorising joint representatives to appear before BSE to approve the resolution and pass an order on issue of warrants in favour of Kalanithi Maran and his KAL Airways Pvt. Ltd.
The court had also sought the release of 100 crore by Maran and KAL Airways to SpiceJet as per the sale purchase agreement.
After the board resolution is passed by SpiceJet, BSE would be required to approve the resolution and pass an order on the issue of warrants in favour of Maran and KAL Airways within two weeks.
Maran and KAL Airways had transferred their entire 350.4 million equity shares in SpiceJet, amounting to a 58.46% in the airline, to its co-founder Ajay Singh in February 2015. Under the deal, which gave Singh control of the airline, they were to receive redeemable warrants in return for the 700 crore they spent on SpiceJet towards operating costs and debt payment, they claimed.
According to Maran’s plea, he had wanted the warrants issued in terms of an application made to the BSE on 18 September 2014 and which had been approved by company’s board on 24 September 2014.
The court will hear the case next on 26 April.
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