Kal Airways promoter seeks attachment of 50% of Spicejet's daily revenue

Spicejet's Chairman and Managing Director Ajay Singh told to appear in court on Aug 24

Kal Airways and its promoter Kalanithi Maran moved the Delhi High Court (HC) on Wednesday seeking 50 per cent of the daily revenue collection of low-cost carrier Spicejet to be paid on a weekly basis. 

The amount to be paid by Spicejet to Maran as of August 3 stood at Rs. 393 crore. 

The court also issued a notice to the airline and its chairman and managing director (CMD) Ajay Singh to file an affidavit disclosing their assets and their revenue collection within a week. 

The court also told Singh to be present for the next date of hearing, which has been fixed to August 24 from September 5. 

 

Senior advocate Maninder Singh, appearing for KAL and Maran, said that in view of the wilful defaults at every stage and laid back attitude, it is just and fair that Spicejet and Singh deposit Rs. 393 crore and file their affidavit of assets before the next date of hearing. 

Meanwhile, senior advocate Sandeep Sethi said that since the matter is already directed to be listed on September 5, it may be heard on that date.

The court, however, did not accept this contention. 

The apex court also said that if SpiceJet failed to pay, then the entire award (Rs. 380 crore) would become executable in entirety in favour of Kal Airways and Kalanithi Maran. 

The HC, on May 29, had ordered SpiceJet to pay Rs. 380 crore to its former promoter Maran and asked the airline to submit an affidavit of assets within four weeks.

Justice Yogesh Khanna of HC issued the 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.

Kal Airways had argued that SpiceJet had failed to comply with the high court order of November 4, 2020, by not filing the affidavit of assets. Additionally, SpiceJet was directed to pay Rs. 242 crore within three weeks from September 2, 2020.

SpiceJet sought to modify the order, but its application was rejected.
 

Subsequently, it challenged these orders before the Supreme Court (SC).
 

The SC directed it on February 13, 2023, to encash the bank guarantee and pay the specified amount directly to Kal Airways.

SpiceJet was also required to pay an additional Rs. 75 crore to Kal Airways within three months, as liability for interest.