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Photo: Pradeep Gaur/Mint
Photo: Pradeep Gaur/Mint

SC stays HC order asking SpiceJet to deposit 243 crore in Kalanithi Maran case

  • On 22 October, Kalanithi Maran and KAL Airways had moved Delhi High Court against non-payment of 243 crore by SpiceJet, and sought attachment of Ajay Singh’s shareholding in the airline

NEW DELHI: The Supreme Court on Friday has stayed the Delhi High Court order directing SpiceJet Ltd to deposit 243 crore with the court registry in the ongoing arbitration case with its former owner Kalanithi Maran and his company KAL Airways.

On 2 September, the Delhi High court had granted six weeks to Ajay Singh-led no-frill carrier SpiceJet Ltd to make the payment. The deadline expired on 14 October.

On 22 October, Kalanithi Maran and KAL Airways had moved Delhi High Court against non-payment of 243 crore by SpiceJet, and sought attachment of Ajay Singh’s shareholding in the airline. Maran and KAL had also sought directions for appointing an administrator to take over the management of the company to ensure payment of the dues till the date of actual payment by liquidating Singh’s shares.

“Till such date, no payment of the amount directed has been made by the judgment debtor, making the judgment debtor wilfully non-compliant and disobedient of this hon’ble courts’ order," they said in the plea in HC.

Subsequently, SpiceJet moved Supreme Court challenging the high court order on the payment of 243 crores. The case was filed during the Dussehra break and was finally heard on Friday.

On Friday, the apex court bench headed by Chief Justice SA Bobde, observed that it shall hear the case in detail and issued notice to Kalanithi Maran and KAL Airways and ordered interim stay for now.

The amount of 243 crore sought as deposit by the Delhi High Court is over and above the 579 crore already deposited by SpiceJet's current promoter in this case.

The case relates to a dispute arising out of non-issuance of warrants in favour of KAL Airways’ non-executive chairperson Kalanithi Maran, after the ownership of the airline was transferred to Ajay Singh, the current controlling shareholder of SpiceJet.


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