 "Delhi HC tells SpiceJet Chief to pay Rs 100 crore to Maran by September 10")
The Delhi High Court on Thursday directed SpiceJet Chairman and Managing Director Ajay Singh to pay Rs 100 crore in dues to KAL Airways promoter Kalanithi Maran by September 10, 2023.
The court warned that if Singh fails to comply, SpiceJet's properties will be attached by the court towards payment of dues. The next hearing is scheduled for September 11, 2023.
Singh appeared in person before Justice Yogesh Khanna, following the court's direction on July 24, 2023.
Senior Advocate Maninder Singh, representing Maran, stated that Ajay Singh and his airline now owe them close to Rs 397 crore. He informed the court that, in line with the court's orders, Singh and SpiceJet had filed an affidavit detailing their assets and liabilities, but not in the prescribed legal format and in a sealed cover. He also requested the attachment of around Rs 200 crore profit of SpiceJet towards the payment of dues to Maran.
Senior Advocate Amit Sibal, representing SpiceJet and Ajay Singh, argued that insolvency would not benefit anyone.
"In the enforcement petition filed by Kalanithi Maran and Kal Airways, the Court in consultation and with the consent of SpiceJet directed the company to pay ₹100 crore by 10 September, 2023. SpiceJet will honour the Delhi High Court’s order and make the specified payment within the prescribed timeframe," a SpiceJet spokesperson commented.
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On July 31, 2023, the Delhi High Court declined to set aside the arbitral award in favour of Kalanithi Maran and against SpiceJet, paving the way for Maran to press for enforcement of the award.
Ajay Singh had sought to set aside the part of the award directing the refund of Rs 270 crore to Kal Airways and Kalanithi Maran.
On May 29, the high court had ordered SpiceJet to pay approximately Rs 380 crore to its former promoter Maran, and instructed the airline to submit an affidavit of assets within four weeks.
Justice Yogesh Khanna of the Delhi High Court issued the order on the execution petition filed by Kal Airways. The order dismissed SpiceJet's claims and directed it to pay the entire arbitral award to Kal Airways.
Kal Airways argued that SpiceJet had failed to comply with the high court's order of November 4, 2020, by neglecting to file the affidavit of assets. Furthermore, SpiceJet was directed to pay around Rs 242 crore within three weeks from September 2, 2020.
SpiceJet sought to modify the order, but its application was denied. It subsequently challenged these orders before the Supreme Court. The Supreme Court then directed SpiceJet on February 13, 2023, to encash the bank guarantee and pay the specified amount directly to Kal Airways.
SpiceJet was also mandated to pay an additional approximately Rs 75 crore to Kal Airways within three months, accounting for interest.
The Supreme Court further stated that if SpiceJet failed to pay, then the entire award (approximately Rs 380 crore) would become executable in entirety in favour of Kal Airways and Kalanithi Maran.
Kal Airways and Maran also approached the Delhi High Court on August 9, seeking 50 per cent of the daily revenue collection of low-cost carrier SpiceJet to be paid to them on a weekly basis.