Moneycontrol
Jul 14, 2017 08:10 PM IST | Source: Moneycontrol.com

SpiceJet promoter battles fresh turbulence as ex-promoter Maran demands Rs 2,000-cr compensation

The claim for compensation has been filed before an arbitral tribunal comprising retired Supreme Court judges Arijit Pasayat, Hemant Laxman Gokhale and KSP Radhakrishnan, the report says.

Two and a half years since he regained control of his company and pulled it back from a death spiral, SpiceJet promoter Ajay Singh is battling storm clouds again.

This time it is in the form of a Rs 2,000 crore compensation demand by the former owner of SpiceJet, Kalanathi Maran.

According to a report in The Economic Times, Maran has accused Ajay Singh and the company of not issuing issue convertible warrants and preference shares to him and his privately held firm KAL Airways, as was agreed in the contract at the time of the transfer in ownership.

The claim for compensation has been filed before an arbitral tribunal comprising retired Supreme Court judges Arijit Pasayat, Hemant Laxman Gokhale and KSP Radhakrishnan, the report says.

Maran says the compensation is for the losses caused because of the non-issuance of warrants and preference shares in exchange for the Rs 679 crore he had infused into SpiceJet when it was struggling.

A report in the Mint newspaper mentions the figure as Rs 690 crore.

SpiceJet has denied charges of the breach of contract.

The SpiceJet spokesperson has been quoted in the Mint report saying that the company had approached the Securities and Exchange Board of India (Sebi) and stock exchange BSE Ltd on at least two occasions for approval to issue warrants to Maran in return for the money he infused in the firm.

BSE and SEBI denied approval, the spokesperson added.

The report says that Maran wanted to issue warrants after infusing some money into the firm back in 2014 before Singh took over, said this person. This too was refused because the company’s lenders refused to give a no-objection certificate.

According to The Economic Times report, Maran will seek restoration of the status quo ante on SpiceJet's ownership if compensation was not forthcoming.
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