SpiceJet and its promoter Ajay Singh on Monday gave the Delhi High Court a fresh timeline for depositing funds linked to an arbitral award in their dispute with Kalanithi Maran and Kal Airways, telling the court they would pay Rs 50 crore within 45 days and the balance Rs 94.5 crore over the following 90 days.
Justice Subramonium Prasad, who had earlier ordered the airline and Singh to deposit around Rs 144 crore with the court registry, was informed of the plan during Monday's hearing.
Airline Cites Central Assistance Amid West Asia Crisis
Senior advocate Mukul Rohatgi, appearing for SpiceJet and Singh, told the court that the airline had received financial assistance from the central government amid the ongoing crisis in West Asia, and committed to paying the first instalment on that basis. The court deferred hearing on the airline's challenge to the arbitration award to November, while listing the matter for September to track compliance on the Rs 144-crore deposit.
ALSO READ | E20 Fuel Concerns: Mercedes Benz India Issues Advisory After YouTuber Sourav Joshi's Viral Claim
The case has moved through several rounds this year. On January 19, the court had ordered a deposit of Rs 144 crore within six weeks, against an admitted liability of Rs 194 crore from the arbitral award. That deadline was extended by four weeks in March, and review pleas against it were dismissed on May 4, though the Supreme Court on May 19 directed the airline to seek an extension from the high court instead. Senior advocate Jayant Mehta, with the law firm Karanjawala & Co., represented Maran.
Dispute Traces Back To 2015
The case stems from warrants never issued to Maran after he and Kal Airways transferred their 58.46% stake in SpiceJet to Singh for a nominal Rs 2 in February 2015, when Singh regained control amid a financial crisis. In May 2024, a division bench set aside an earlier order upholding a Rs 579-crore refund award against Singh and SpiceJet, sending the matter back for fresh consideration.
ALSO READ | HCLTech Q1 Attrition Rate Rises To 12.7%, Headcount Falls By Over 3,000
(With PTI inputs)
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
