The airline reportedly requested the annulment of the arbitral ruling and a waiver of the interest.
Digital Desk: The Delhi High Court refused to set aside an arbitration decision from 2018 that favoured Kalanithi Maran and KAL Airways, instead ordering SpiceJet and its promoter Ajay Singh to reimburse Maran and KAL Airways Rs 579 crore plus interest.
Maran is the chairman and founder of the media empire Sun Group. He formerly promoted SpiceJet and founded KAL Airways. According to the arbitral award's judgement, Kal Airways and Maran are entitled to refunds of Rs 270 crore for cumulative redeemable preference shares (CRPS) and Rs 308 crore for warrants.
Additionally, the legal team representing Kal Airways and Maran before the High Court said in a statement, "Furthermore, Kal Airways and Maran were also awarded an interest of 12 percent towards Pendente lite (while suit is pending) and an interest of 18 percent from the last date of the due date in terms of the Arbitral Award in case the payments, as directed, to be made by Spicejet and Singh, are not made within two months from the date of award."
The airline reportedly requested the annulment of the arbitral ruling and a waiver of the interest.
The two parties have been at odds since Maran sold his 58.46% interest in SpiceJet for a pittance of Rs 2 in 2015. Maran filed a complaint with the Delhi High Court in 2016, alleging that SpiceJet had broken the terms of the agreement by failing to grant him share warrants and preference shares despite a capital infusion. The airline was ordered by the court to deposit Rs 579 crore in 2017, and both parties were urged to resolve the dispute through arbitration. Maran received a Rs 579 crore with interest award from an arbitration tribunal in 2018.
Both parties filed appeals against the arbitration order. Maran also submitted an enforcement request. The High Court ruled in September 2020 that SpiceJet must pay Maran Rs 242 crore in interest. In November, the airline petitioned the Supreme Court and won a stay.
The Supreme Court ordered SpiceJet to cash in its Rs 270 crore bank guarantee in February of this year and to pay Rs 75 crore in interest within three months. Maran approached the High Court in May to request compensation from the airline.
After SpiceJet missed the deadline set in February, the Supreme Court ordered the airline to pay the entire arbitral sum in July.
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