PremiumThe case relates to a dispute arising out of non-issuance of warrants in favour of KAL Airways’s non-executive chairperson Kalanithi Maran, after the ownership of the airline was transferred to Ajay Singh
NEW DELHI : The Delhi high court on Monday directed 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.
The court directed the Ajay Singh-led low-fare airline to make the payment within six weeks, adding that if it fails to do so, Maran can approach the court to seek status quo on SpiceJet’s shareholding.
This amount is over and above the ₹579 crore that SpiceJet has already deposited with court.
The airline is reviewing the Delhi high court order, a spokesperson said.
SpiceJet shares closed 2.52% lower on BSE on Monday, even as the benchmark Sensex index closed 0.16% higher.
Maran had dragged SpiceJet to the Delhi high court in February 2015, demanding that 180 million warrants redeemable as equity shares be transferred to them.
Maran and Kal had transferred their entire 350.4 million equity shares in SpiceJet, amounting to a 58.46% stake in the airline, to the airline co-founder Ajay Singh in February 2015.
Under the deal that gave Singh control of the airline, they were to receive the redeemable warrants in return for the ₹ 700 crore they spent on SpiceJet towards operating costs and debt payment, Maran has claimed.
In July 2017, Justice Manmohan Singh of the Delhi high court directed SpiceJet to deposit ₹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.
