The Delhi High Court has taken a stern stand against SpiceJet promoter, Ajay Singh, for failing to comply with an asset disclosure order. The court has ordered Singh to appear in person for the next hearing, following an application filed by Sun Group Chairman, Kalanithi Maran. The application alleged that SpiceJet did not file an affidavit of assets and liabilities as required by the court order. Maran had sought to execute an arbitral award worth ₹578 crore related to a share-transfer dispute against SpiceJet.
The legal battle between the two parties had reached the Supreme Court on July 8, where the request for an extension of the payment deadline to Kalanithi Maran and his Kal Airways was denied. The arbitral award was in favor of Maran, but SpiceJet had not complied with the earlier High Court order to disclose its assets.
Senior advocate Maninder Singh, represented Kalanithi Maran in the case, argued that SpiceJet’s failure to disclose its assets warranted serious consequences, including the possibility of Ajay Singh’s arrest for non-compliance. Singh cited Order 21 of the Civil Procedure Code 1908, which mandates detention in a civil prison for those who do not abide by asset disclosure orders.
SpiceJet’s defense was led by senior advocate Sandeep Sethi, who requested an opportunity to explain their position during the hearing scheduled for September 5, 2023. The court, however, was firm in its decision and issued a notice to both SpiceJet and Ajay Singh in response to Maran’s application seeking civil arrest.
Earlier in June, the Delhi High Court had directed SpiceJet to deposit ₹75 crore immediately, representing the interest on the arbitral award owed to Maran and Kal Airways. The apex court had also ordered the encashment of SpiceJet’s bank guarantee of ₹270 crore for payment to Maran and Kal Airways toward dues from the arbitral award.
The ongoing legal battle has been a protracted one, with the High Court ordering SpiceJet and Ajay Singh to deposit around ₹243 crore as interest on the principal amount of ₹578 crore. The payment deadline, which expired on October 14, 2020, was not met by SpiceJet, resulting in legal consequences.