- SpiceJet will comply with Supreme Court order to deposit Rs 144.5 crore in arbitration dispute
- The Supreme Court upheld Delhi High Court's order and fined Ajay Singh Rs 1 lakh for repeated litigation
- SpiceJet has paid Rs 730 crore to Kalanithi Maran and KAL Airways including principal and interest
SpiceJet Ltd. on Friday said that it will comply with Supreme Court's direction of depositing Rs 144.5 crore in its arbitration dispute with Kalanithi Maran and KAL Airways Pvt Ltd.
Originally, the Delhi High Court had ordered the airline to make the deposit in question. The statement comes after a plea challenging HC's order, filed by SpiceJet and its chairman Ajay Singh, was rejected by the SC earlier on Friday. The apex court, in its ruling, upheld Delhi HC's order.
ALSO READ: Supreme Court Dismisses SpiceJet's Challenge, Orders Rs 144.5 Crore Deposit To Maran
In its statement, the airline explained that the matter arose from a share transfer agreement involving SpiceJet, its promoter Ajay Singh, KAL Airways and Kalanithi Maran.
"SpiceJet has paid a total of Rs 730 crore to Kalanithi Maran and KAL Airways, including the entire principal amount of Rs 580 crore and Rs 150 crore towards interest. The remaining amount, as directed by the court, will be deposited in court in accordance with the arbitration process," the statement highlighted. It added this development has no impact on its day-to-day operations.
A bench of Justices PS Narasimha and Alok Aradhe on Friday declined to interfere with the High Court's direction and imposed a fine of Rs 1 lakh on Ajay Singh, observing that the litigation had been pursued repeatedly over the years.
The case stemmed from a 2015 transaction when SpiceJet was facing acute financial distress and risked suspension of operations.
SpiceJet further outlined that claims of over Rs 1,300 crore in damages made by KAL Airways and Kalanithi Maran have been rejected, and "these orders have attained finality". Moreover, the airline said, all challenges to the arbitral award by KAL Airways and Kalanithi Maran have also been dismissed.
However, SpiceJet underscored that claims against KAL Airways and Kalanithi Maran for a refund of amounts paid is being heard by the Delhi High Court.
"SpiceJet's claims against KAL Airways and Kalanithi Maran for a refund of amounts paid is being heard by the Delhi High Court and there is a prima facie finding of the court in favour of SpiceJet," the airline stated.
SpiceJet remarked that it remains confident of receiving a potential refund of Rs 449 crore on the culmination of this legal process.
ALSO READ: Leh-Bound SpiceJet Plane Returns To New Delhi After Facing Engine Issue
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
