Will deposit Rs 50cr in 45 days: SpiceJet tells HC on dispute
SpiceJet and its promoter Ajay Singh on Monday assured the Delhi High Court that they will deposit Rs 50 crore in 45 days with the court registry in connection with a legal dispute with media baron Kalanithi Maran and Kal Airways.
Justice Subramonium Prasad — who has earlier directed SpiceJet and Singh to deposit around Rs 144 crore in the case arising from an arbitral award against them in their dispute with Maran — was told that the remaining Rs 94.50 crore would also be deposited in the next ninety days.
On May 4, the bench dismissed pleas by SpiceJet and Ajay Singh seeking a review of a January 19 order to deposit over Rs 144 crore in the case. The Supreme Court, on May 19, however, asked the airline to approach the high court for extension of time to make the deposit.
The senior counsel for SpiceJet and its promoter on Monday informed the court that they have received financial assistance from the central government amid the ongoing West Asia crisis and undertook to pay Rs 50 crore as the first instalment.
He further said that the balance would also be paid in the next 90 days.
Considering the stand, the court deferred hearing till November on the airline’s plea against the arbitration award.
It listed the matter in September as well on the issue of deposit of Rs 144 crore with the registry.
Senior advocate Jayant Mehta appeared for Maran, along with law firm Karanjawala & Co.
Senior advocate Mukul Rohatgi appeared for SpiceJet and Singh.
On January 19, the court had directed SpiceJet and Singh to deposit Rs 144 crore with the registry within six weeks against an admitted liability of Rs 194 crore pursuant to the arbitration award against them in their dispute with Maran. On March 18, the time to make the deposit was extended by four weeks.
The matter arises from a dispute regarding the non-issuance of warrants in favour of Maran after the transfer of ownership to Singh, the controlling shareholder of SpiceJet.
The dispute started after Singh took back control of SpiceJet in February 2015 amid a financial crisis at the airline.
Maran and Kal Airways had transferred their entire 35.04 crore equity shares, amounting to a 58.46 per cent stake, in SpiceJet, to its co-founder, Singh, in February 2015 for just Rs 2.
In May 2024, a division bench of the high court set aside a single-judge bench order which had upheld an arbitral award asking SpiceJet and Ajay Singh to refund Rs 579 crore plus interest to Maran.
The division bench allowed the appeals filed by Singh and SpiceJet challenging the single judge’s July 31, 2023, order and remanded the matter back to the court concerned to consider the petitions afresh.
