Moneycontrol
Last Updated : Mar 15, 2016 05:14 PM IST | Source: CNBC-TV18

Pass resolution for warrants issuance to Maran: HC to SpiceJet

The Delhi High Court today issued an order asking the board of SpiceJet to issue warrants to its erstwhile promoter Malanithi Karan.

 
 
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The Delhi High Court today issued an order asking the board of SpiceJet to issue warrants to its erstwhile promoter Malanithi Karan.

The court asked SpiceJet to pass a board resolution within three days, and directed BSE to reconsider Maran's application for issuance of warrants upon passing of board resolution.

The legal battle between Maran and SpiceJet ensued after the former said the company had not issued 18 crore warrants in his name, as per the share purchase agreement that was signed when Maran sold controlling stake in the airline to its founder Ajay Singh last year.

SpiceJet on its part maintained that as per the share purchase agreement, Maran was to pay Rs 678 crore but it had so far recieved only Rs 579 crore. To this, the court suggested to Maran that he consider payment of Rs 100 crore to SpiceJet as per the agreement.

Reacting to the court decision, a SpiceJet spokesperson said: "In accordance with court proceedings SpiceJet will pass a resolution within three days authorizing joint representatives to appear before BSE/SEBI to reconsider its earlier application regarding issue of warrants."

Upon conversion of the warrants, Maran would own stake of about 25 percent in SpiceJet.
First Published on Mar 15, 2016 05:09 pm
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