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Budget carrier SpiceJet has been directed by the Delhi High Court to pay ₹380 crore to Kalanithi Maran, the former promoter of the airline and founder of Sun Group. The court order, dated May 29, states that SpiceJet is yet to pay ₹75 crore to Maran, as directed by the Supreme Court on February 13. The Supreme Court had given the low-cost airline three months to make the payment, but it failed to comply.
Kalanithi Maran’s company, KAL Airways Pvt Ltd, filed an application against SpiceJet, accusing the airline of not submitting an affidavit of its assets as per the High Court’s November 2020 order, and failing to make the payment as directed by the Supreme Court. In addition to the payment, the Delhi High Court has also ordered SpiceJet to submit an affidavit of its assets within four weeks.
This ruling comes as a setback to SpiceJet, despite the airline posting a four-fold increase in earnings at ₹106.8 crore in the December quarter. It also adds to the challenges the airline is already facing, including a battle with aircraft lessors over payments.
The dispute between Kalanithi Maran and SpiceJet dates back to 2015, when Maran transferred 58.46 per cent of his shares to Ajay Singh, the current Chairman of SpiceJet. As part of the agreement, Maran was to be issued warrants and preference shares, for which he had paid ₹679 crore. However, he alleged that the shares were neither issued nor the money refunded.
After a long legal battle, SpiceJet ended up paying Maran a principal amount of ₹579.08 crore. However, the interest portion remained pending. The interest amount, which was ₹242 crore in October 2020, accumulated to ₹362 crore by February 2023 and has now reached ₹380 crore.
SpiceJet has stated that it is already in discussions with Maran and KAL Airways for a comprehensive settlement and is confident of resolving the issue mutually. The airline’s lawyers have also mentioned that the Marans have the option to reverse the transaction and take back the airline.
Meanwhile, SpiceJet has said that the airline is in dialogue with Maran and his firm KAL Airways for comprehensive settlement of the matter. “We are confident of resolving the same mutually as we have already paid the entire principal amount of ₹578 crore earlier awarded by the Arbitral Tribunal,” it said.
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