 "No amicable settlement between SpiceJet and Kalanithi Maran: Sun Group")
Chennai-based Sun Group said on Monday there is "no question" of making an amicable settlement with SpiceJet in connection with an interest payment the budget airline has to make in arbitration award. Later on the day, SpiceJet stated that it remains committed to finding an amicable settlement in this matter.
Media reports said on Sunday SpiceJet is in talks with Kalanithi Maran, Sun Group chairman and founder, and his Kal Airways for an amicable settlement, following a Supreme Court verdict that went against the airline. The Supreme Court has asked the airline to pay the entire arbitral amount worth more than Rs 380 crore to Maran, its former promoter, in a 2018 arbitration award case.
“It has come to our knowledge that a statement purportedly issued by the spokesperson of SpiceJet has been circulating among certain sections of the media that SpiceJet is in talks with Kalanithi Maran and Kal Airways for an amicable settlement," said Sun Group in a statement.
“We deny the same and state that there is no question of an amicable settlement with SpiceJet in view of the matter having reached finality by virtue of the order dated July 7, 2023 of the Honourable Supreme Court of India." “We hope that SpiceJet Ltd will comply with the orders of the Supreme Court of India and pay us the interest amount of Rs 386 crore forthwith," it said.
The Supreme Court denied more time to SpiceJet to pay the amount and reprimanded the airline for failing to pay Rs 75 crore as per its earlier direction. “The payment of Rs 380 crore as directed to be paid by the Supreme Court in the matter relating to Maran and his firm KAL Airways is only a security deposit amount arising from execution proceedings. The final amount to be paid by either side will be determined by the High Court of Delhi in the proceeding pending under Section 34 of the Arbitration Act. Orders in this petition have been reserved on 18 April, 2023 and are awaited,” said a SpiceJet statement.
“We would also like to clarify that SpiceJet had in May 2023 approached the Supreme Court seeking an extension for paying Rs 75 crore but the matter was only listed on July 7. The Courts’ proceedings and orders are held in the highest esteem by the Company. In the larger interest, we remain committed to finding an amicable settlement in this matter,” it added.
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On February 13, the Supreme Court had directed the airline to pay Rs 75 crore against the total claim of Rs 362.49 crore by Maran within three months. The airline defaulted on the payment. Maran approached the Delhi High Court in May, saying that Spicejet had failed to comply with the Supreme Court order. The Delhi High Court then asked SpiceJet to pay Rs 380 crore to Maran. It also instructed Spicejet to file an affidavit of assets.
According to Kal Airways, Spicejet has failed to comply with an order dated November 4, 2020, issued by the Delhi High Court, by not filing the affidavit of assets. Additionally, Spicejet was directed to pay an amount of Rs 242 crore within three weeks from order passed by the High Court on September 2, 2020. The airline then challenged the orders before the Supreme Court, which in February asked it to encash the bank guarantee and pay the specified amount directly to Kal Airways.