The Delhi High Court on Thursday directed SpiceJet Chairman and Managing Director Ajay Singh to pay Rs 100 crore to KAL Airways promoter Kalanithi Maran by September 10, 2023.
The court warned that if Singh fails to comply, SpiceJet’s properties will be attached by the court to pay the dues. The next hearing is to be held on September 11, 2023.
Complying with the court’s direction on July 24, 2023, Singh personally appeared before Justice Yogesh Khanna.
Senior advocate Maninder Singh, representing Maran, said that Ajay Singh and his airline now owe him around Rs 397 crore. He informed the court that, in line with the court’s orders, Singh and SpiceJet had filed an affidavit giving details of their assets and liabilities, but not in the prescribed legal format and in a sealed cover. He also requested forfeiture of SpiceJet’s profits of around Rs 200 crore to pay dues to Maran.
Senior advocate Amit Sibal, representing SpiceJet and Ajay Singh, argued that bankruptcy would not benefit anyone.
“In the enforcement petition filed by Kalanithi Maran and Kaal Airways, the Court, in consultation and consent with SpiceJet, directed the company to pay ₹100 crore by September 10, 2023. SpiceJet shall comply with the order of the Delhi High Court and make the specified payment within the stipulated time frame,” commented SpiceJet spokesperson.
On July 31, 2023, the Delhi High Court refused to set aside the arbitral award in favor of Kalanithi Maran and against SpiceJet, paving the way for Maran to press for implementation of the award.
Ajay Singh had yesterday sought quashing of the part of the award directing Airways and Kalanithi Maran to return Rs 270 crore.
On May 29, the High Court had ordered SpiceJet to pay around Rs 380 crore to its former promoter Maran, and directed the airline to submit an asset affidavit within four weeks.
Justice Yogesh Khanna of the Delhi High Court yesterday issued the order on the execution petition filed by the Airways. The order rejected the claims of SpiceJet and directed it to pay the entire arbitral award to Kal Airways.
Kal Airways argued that SpiceJet had failed to comply with the High Court’s order dated November 4, 2020, by neglecting to file an affidavit of assets. In addition, SpiceJet was directed to pay approximately Rs 242 crore within three weeks from September 2, 2020.
SpiceJet sought modification of the order, but its application was denied. It later challenged these orders before the Supreme Court. Subsequently, the Supreme Court directed SpiceJet to encash the bank guarantee and pay the specified amount directly to Kal Airways on February 13, 2023.
SpiceJet was also ordered to pay an additional amount of about Rs 75 crore to Kal Airways within three months towards interest.
The Supreme Court further said that if SpiceJet failed to make the payment, the entire award (approximately Rs 380 crore) would become executable in favor of Kalyan Airways and Kalanithi Maran.
Kal Airways and Maran also approached the Delhi High Court on August 9, demanding that 50 per cent of the daily revenue collection of low-cost carrier SpiceJet be paid to them on a weekly basis.