Maran Vs SpiceJet case: Delhi HC defers hearing to November 20

SpiceJet

The Delhi High Court on October 13 deferred the hearing of Sun group Chairman Kalanithi Maran's plea against low-cost airline SpiceJet and Ajay Singh to November 20.

The HC has also asked SpiceJet to file a copy of their statement of accounts for the quarter ending September 30.

In September 2023, SpiceJet and Singh complied with the court's direction to pay Kalanithi Maran Rs 100 crore towards the dues they owed the Sun group chairperson. The court had warned that a failure to pay could lead to the court attaching Spicejet's profits for the previous quarter

Singh was asked to be present in person after Maran filed an application, saying SpiceJet had not filed an affidavit detailing assets and liabilities despite being asked to do so in 2020.

Maran claimed that SpiceJet owed him Rs 393 crore as of August 3 and sought an attachment of 50 percent of SpiceJet's daily revenues towards paying the dues. Maran filed the petition for executing an arbitral award against SpiceJet.

The validity of the arbitral award, which was being contested, was upheld by a single judge of the high court on July 31. SpiceJet and Singh challenged the order before a division bench of the court.

The Supreme Court on July 7 held the award as executable, saying SpiceJet did not adhere to the timeline it had laid down in February to make certain payments to Maran.

Disposing of the case, the top court directed that SpiceJet’s Rs 270-crore bank guarantee be encashed and asked the airline to pay Rs 75 crore towards interest within three months.

Arbitral award

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.