SpiceJet and its promoter Ajay Singh have informed the Delhi High Court that they will deposit Rs 50 crore within 45 days as part of compliance with a court order related to their long-running dispute with Kalanithi Maran and Kal Airways. The airline has also committed to depositing the remaining amount of Rs 94.5 crore within the following 90 days.
The commitment was made during a hearing before Justice Subramonium Prasad, who had earlier directed SpiceJet and Singh to deposit around Rs 144 crore with the court registry in connection with an arbitral award dispute. The court was informed about the proposed payment schedule while considering the matter involving the airline, Maran, and Kal Airways.
Senior advocate Mukul Rohatgi, representing SpiceJet and Ajay Singh, told the court that the airline had received financial assistance from the Central government amid the ongoing West Asia crisis. He said the support would help the airline meet the first instalment of the court-mandated deposit. The court deferred the hearing on SpiceJet’s challenge to the arbitration award until November and scheduled a September hearing to review compliance with the deposit order.
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The dispute has gone through multiple legal proceedings over the past year. In January, the Delhi High Court had directed SpiceJet and Singh to deposit Rs 144 crore within six weeks against an admitted liability of Rs 194 crore arising from the arbitral award. The deadline was later extended, while review petitions against the order were dismissed. The Supreme Court subsequently allowed the airline to approach the High Court for seeking additional time.
The case relates to a 2015 transaction involving Kalanithi Maran and Kal Airways, who had transferred their 58.46 per cent stake in SpiceJet to Ajay Singh for a nominal amount of Rs 2 when the airline was facing financial difficulties. The dispute emerged over allegations concerning warrants that were not issued to Maran after the transfer of ownership.
In May 2024, a division bench of the Delhi High Court set aside an earlier order that had upheld a Rs 579 crore refund award against SpiceJet and Ajay Singh and sent the matter back for fresh consideration. The latest proceedings continue as both sides await further legal developments over the arbitration dispute and compliance with the court’s deposit directions.
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