Delhi HC defers hearing of SpiceJet chief Ajay Singh's bail plea in light of settlement talks

Ajay Singh, SpiceJet

Delhi High Court on September 5 deferred the hearing of bail plea by SpiceJet Chairman and Managing Director Ajay Singh in view of the settlement talks between the complainant and him.

The case is now likely to be taken up for hearing on September 21.

Justice Dinesh Kumar Sharma, who presided over the bench, orally observed that as per media reports, SpiceJet is doing well and therefore urged Singh to enter into a settlement with the complainant. Senior advocate Sidharth Luthra, who appeared for Singh informed the court that there was a confusion in the ongoing settlement talks as both lawyers and parties initiated discussions with each other. Luthra assured the bench that the issue will mostly be resolved if the lawyers of the parties get together and discuss the same.

The judge's observation comes in the light of SpiceJet allotting over 48 million shares to nine aircraft lessors to clear outstanding dues worth 2.31 billion rupees (nearly $28 million), as the troubled airline looks to return to full operations.

Last week, SpiceJet's shareholders passed a number of resolutions, including a 25 billion rupees fundraise and a preferential issue of shares to lessors to clear outstanding dues.

In July 2023, the judge observed that the allegations against of fraud against Ajay Singh in a share transfer agreement dispute were serious in nature and therefore urged the parties to settle.

The case pertained to the transfer of shares of the low-cost airline to certain individuals. It was alleged by a Delhi businessman and his family that they had entered into a share purchase agreement with Singh and paid Rs 10 lakh for 10 lakh shares, but Singh did not give the shares. It was also alleged that he had handed over outdated and invalid DIS (delivery instruction slip).

In April 2022, the high court had granted interim relief to Singh against any coercive action by police. In September 2022, the court clarified that the it had not stayed the investigation against Ajay Singh.

The trial court rejected his anticipatory bail application last month, stating that it did not find sufficient grounds to grant relief to him in view of the overall facts and circumstances of the case and the gravity of the offence.