SC junks SpiceJet’s plea against order to deposit Rs 144 crore

The Supreme Court on Friday junked a plea filed by SpiceJet Limited and its chairman, Ajay Singh, challenging an order by the Delhi High Court to deposit Rs 144.5 crore in the arbitration dispute with Kalanithi Maran and KAL Airways Pvt Ltd. A bench of Justices PS Narasimha and Alok Aradhe upheld the January 19 order of the High Court and also imposed costs of Rs 1 lakh on Ajay Singh for pursuing the litigation endlessly.

Reacting on the order, SpiceJet said it has taken note of the order and the company is examining the order and will comply with all court directions.

“SpiceJet would like to assure all stakeholders that this development has no impact on its day-to-day operations. The matter arises from a share transfer agreement involving SpiceJet, its promoter Ajay Singh, KAL Airways and Kalanithi Maran. “SpiceJet has paid a total of Rs 730 crore to Kalanithi Maran and KAL Airways, including the entire principal amount of Rs 580 crore and Rs 150 crore towards interest. The remaining amount, as directed by the court, will be deposited in court in accordance with the arbitration process,” a release from the company said.

The dispute stems from a 2015 share transfer agreement where Kalanithi Maran and KAL Airways transferred their 58.46 per cent stake in SpiceJet to Ajay Singh under a share sale and purchase agreement.

In January, the High Court also observed that the top court’s 2023 payment and compliance directions had not been fully followed.

The High Court noted that SpiceJet had acknowledged Rs 194.51 crore as payable under directions issued by the top court. After accounting for the Rs 50 crore already deposited, a balance of Rs 144.51 crore remains unpaid.