SUPREME COURT STAYS DELHI HIGH COURT ORDER DIRECTING SPICEJET TO DEPOSIT Rs. 243 CRORES IN KALANITHI MARAN CASE

7th, NOVEMBER 2020

The Supreme Court stayed the Delhi High Court order, which had ordered SpiceJet to pay Rs. 243 crore in an ongoing adjudication case with its former owner Kalanithi Maran. The High Court had ordered Spicejet to pay the amount with the High Court Registry within 6 weeks. When Spicejet failed to fulfil the High Court’s order, Kalanithi Maran and KAL Airways filed an appeal before the Delhi High Court looking for attachment of Ajay Singh’s shareholding in Spicejet.

Maran and KAL had transferred a 58.46 per cent stake in Spicejet to Ajay Singh when the company was going through a severe downfall and financial crunches. Maran and KAL said that they had paid Rs 679 Crores to Spicejet in exchange for preference shares and warrants. Maran filed a case against Ajay Singh and Spicejet, claiming non-issuance of the preference shares and warrants nor the return of the money paid to them. In 2019, the Arbitration panel declined Maran’s claim of damages but ordered them to make a payment of Rs 579 as an award.

Author: Shweta Singh