SpiceJet Ltd. will ask for a refund of Rs 450 crore from former promoter Kalanithi Maran and his firm, KAL Airways, in a longstanding dispute over a share transfer agreement, the airline said on Wednesday. The demand follows an order by a division bench of the Delhi High Court on May 17 in favour of SpiceJet and current promoter Ajay Singh in the matter.
The ruling overturns a previous decision by a single-judge bench that ordered SpiceJet to refund over Rs 270 crore to Maran. With the previous order impugned, SpiceJet is set to receive a refund of Rs 450 crore.
This dispute originates from a 2015 agreement between Maran and Singh. Under this agreement, Maran—associated with Sun Network and KAL Airways—transferred 58.46% stake in SpiceJet to Singh. The no-frills carrier has paid Rs 730 crore—comprising Rs 580 crore in principal and Rs 150 crore in interest—to Maran and KAL Airways.
The appeal by SpiceJet and Singh challenged the award of refund and the justification of interest in the case. In its ruling, the division bench held that the single-judge bench ruling had erroneously dismissed petitions of Singh and SpiceJet despite admitted breaches on the part of KAL Airways and Maran, the airline said in a statement.
The high court also said that penal interest had been charged against SpiceJet despite the airline not being in any breach of the share purchase agreement.
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