BackSpiceJet, Ajay Singh move Delhi HC against KAL Airways in appeal
The case relates to a dispute arising out of non-issuance of warrants in favour of Kalanithi Maran, after transfer of ownership to Ajay Singh
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New Delhi: SpiceJet Ltd and its owner Ajay Singh on Friday moved the Delhi high court in appeal against a 29 July ruling over a share transfer dispute with KAL Airways Pvt. Ltd.
On 29 July, justice Manmohan Singh of the Delhi high court directed SpiceJet to deposit ₹ 579 crore in five equal monthly instalments with the court registry, the first of which is due by 7 August. The court also asked KAL Airways and SpiceJet to set up an arbitral tribunal to resolve the issue.
On Friday, a two-judge bench of the high court headed by justice Pradeep Nandrajog said that the case will be heard on 8 August.
One of the main issues that SpiceJet has raised for appealing the 29 July order, the airline’s lawyer C. A. Sundaram told the court, was that the July ruling amounted to an interim order under the Arbitration Act, even when there was no pending arbitration between the two parties.
The case relates to a dispute arising out of non-issuance of warrants in favour of KAL’s non-executive chairperson Kalanithi Maran, after transfer of ownership to Ajay Singh, the current controlling shareholder of SpiceJet.
Maran and Kal Airways had transferred their entire 58.46% stake in SpiceJet, amounting to 350.4 million shares, to its co-founder Ajay Singh in February 2015, leading to a change in ownership of the airline.
Under the agreement, KAL Airways and Maran were to receive redeemable warrants in return for the ₹ 690 crore they spent on SpiceJet towards operating costs and debt payment.
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