SpiceJet Refutes Rs 1,323-Crore Claim By KAL Airways, Kalanithi Maran
The airline asserted that these claims are legally untenable.
SpiceJet Ltd. refuted claims made by KAL Airways and Kalanithi Maran seeking Rs 1,323 crore in damages on Tuesday. The airline asserted that these claims are legally untenable and a reiteration of previously rejected claims by both the Arbitral Tribunal and the Delhi High Court.
The dispute stems from a 2015 agreement in which Maran, associated with Sun Network and Kal Airways, transferred a 58.46% stake in SpiceJet to the airline's promoter Ajay Singh. The agreement included provisions for Maran and Kal Airways to receive warrants and preference shares, which were never issued.
In 2018, an arbitral tribunal ruled in favor of Maran, awarding him Rs 579 crore plus interest. The tribunal dismissed Maran's Rs 1,323 crore damages claim for the non-issuance of warrants, but mandated a refund of Rs 579 crore plus interest.
SpiceJet was instructed to provide a bank guarantee of Rs 329 crore and deposit Rs 250 crore in cash. Specifically, the airline had to pay Rs 308 crore in cash, with 12% interest for 30 months, and issue Rs 270 crore in compulsory redeemable preference shares, or refund the money as per the Share Purchase Agreement. Failure to comply was supposed to entitle Maran to 18% interest.
However, on May 17, a division bench of the Delhi High Court overturned a single-judge's order directing SpiceJet to refund over Rs 270 crore to Maran. Following this decision, SpiceJet announced it would seek a refund of Rs 450 crore from Maran and KAL Airways.
After this, KAL Airways and Kalanithi Maran announced on Monday that they would seek over Rs 1,323 crore in damages from SpiceJet and its chief Ajay Singh. They also plan to challenge the recent Delhi High Court order in the ongoing dispute.
