SpiceJet on September 11 said it will "complete the payment of Rs 100 crore" to former promoter Kalanithi Maran by September 12, as per the directions of the Delhi High Court.
The airline, in a statement, noted that it has so far "made a payment of Rs 77.5 crore" to Maran, and will make another payment of Rs 22.5 crore by "tomorrow".
Earlier in the day, the Delhi High Court granted Ajay Singh, the chairman and managing director (CMD) of SpiceJet, and the company time until September 12 to pay Rs 100 crore to Maran.
In February 2015, Maran and KAL Airways, his investment vehicle, transferred their 58.46 percent in SpiceJet to Singh, who took on the airline’s liabilities of around Rs 1,500 crore.
As part of the agreement, Maran and KAL Airways said they paid SpiceJet Rs 679 crore for issuing warrants and preference shares. Maran alleged that the warrants and preference shares were not allotted and initiated arbitration proceedings against SpiceJet and Singh.
In July 2018, an arbitration panel rejected Maran’s claim of damages of Rs 1,323 crore for not issuing warrants to him and KAL Airways but awarded him a refund of Rs 579 crore plus interest. SpiceJet was permitted to furnish a bank guarantee for Rs 329 crore and make a cash deposit of the remaining sum of Rs 250 crore.
Credit Suisse case
Spicejet, in its statement, also noted that it would make a payment of $1.5 million in the Credit Suisse case in accordance with a court directive.
"SpiceJet acknowledges the legal process and is committed to complying with all court directives and obligations in the Credit Suisse case and will make the payment of $1.5 million as per the court directive," the low-cost airline noted.
Furthermore, SpiceJet stated that it has already paid a total of $8 million to Credit Suisse.
Earlier in the day, the Supreme Court directed the airline to make the payment by September 15, failing which the bench would need to take "drastic action" at the next hearing.
"Enough of this dilly-dally business...We are not bothered even if you die," the bench said during the hearing, which was attended by Ajay Singh.
The Supreme Court had been adjourning Credit Suisse's contempt plea on SpiceJet’s undertakings to continue paying $500,000 every month. This time, the court refused to adjourn the case without issuing a notice.
In May 2022, SpiceJet and Credit Suisse entered into an agreement to resolve a payment dispute, which arose after the airline failed to clear dues to SR Technics, a Switzerland-based company that provides aircraft maintenance services. SpiceJet defaulted on dues amounting to $20 million.
The Madras High Court had ordered the winding up of SpiceJet due to the dispute. The Supreme Court stayed the order on a plea by the airline and urged both parties to settle the dispute.
An agreement was reached in May 2022, requiring SpiceJet to make an upfront payment and the remaining balance over an agreed timeline.
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