'We are struggling to stay afloat', SpiceJet tells Delhi High Court

Spicejet told the Delhi High Court on Monday that it was "struggling to stay afloat" after the low-cost carrier was ordered to make a payment to its former owner Kalanithi Maran over money owed.
 

The airline told the court that forcing it to pay in cash would be detrimental to the parties involved in the case, and none of the stakeholders would benefit if the budget airline went into insolvency.
 

The court told airline's Chairman and Managing Director Ajay Singh to attend the hearing on January 10 regarding payment of arbitral award dues to founder of the Sun Group and promoter of Kal Airways Maran.
 

Senior Advocate Maninder Singh, appearing for Maran, told the court that SpiceJet had to pay Rs 440 crore to them as interest arising out of arbitral award dues. The advocate also told the court that after paying Rs 100 crore in September, SpiceJet has not made any further payment.
 

Senior Advocate Amit Sibal, appearing for SpiceJet and Singh, said the due amount, according to them, is only Rs 194 crore. He told the court that the low-cost carrier was ready to offer Maran equity shares for the amount which the Sun Group founder did not accept.
 

Sibal also told the court that SpiceJet was "struggling to stay afloat" amid grounding of its aircraft, the Covid-19 pandemic and the rise in fuel prices. He said forcing the airline to pay in cash would be detrimental to the parties involved and none of the stakeholders would benefit if the airline goes into insolvency.
 

SpiceJet said it had paid Maran Rs 100 crore on September 12, out of an order of Rs 380 crore in an arbitral award.

The High Court, on August 24, told Singh to pay Rs 100 crore due to Maran by September 10. It warned Singh that if he failed to pay, SpiceJet’s properties would be attached. Singh was then given another day to make the payment.

The court, on July 31, had refused to set aside the arbitral award in favour of Maran, making way for him to press SpiceJet for enforcement of the award.
 

Singh had sought to set aside a portion of the award, which directed the airline to refund Rs 270 crore to Kal Airways and Maran.

The High Court, on May 29, ordered the airline to pay Rs 380 crore to its former owner Maran and asked the airline to submit an affidavit of assets within four weeks.
 

It issued an order on the execution petition filed by Kal Airways. The order rejected the claims of SpiceJet and directed it to pay the entire arbitral award to Kal.