Blow to SpiceJet, will have to pay Rs 380 crore, the court also refused to give more time
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In a jolt to low-cost carrier SpiceJet in a share transfer dispute, the Supreme Court Friday refused to extend the deadline for it to pay Rs 578 crore to media baron Kalanithi Maran and his KAL Airways under an arbitration award. Refusing to extend time, the Delhi High Court had on June 1 directed SpiceJet to “immediately” deposit Rs 75 crore, which was to be paid to Maran and his airways company as interest on the arbitration amount.
Earlier, the top court had ordered that Rs 270 crore bank guarantees given by SpiceJet to Maran and his company would be forfeited if SpiceJet Airlines failed to pay Rs 75 crore of interest on the amount fixed under the arbitration award by May 13. should be redeemed immediately.
A bench of Chief Justice DY Chandrachud and Justice PS Narasimha on Friday did not accept the forceful arguments of senior advocate Mukul Rohatgi, appearing for SpiceJet, and refused to extend the time saying that the award-awarded amount is now executable. Has gone Justice Chandrachud said, “The whole team of lawyers is involved in all this and you know it is only to delay the compliance of the orders of the court. I personally will not accept it… The order of the court has to be followed and now, they (Delhi High Court) will execute the judgement,” senior advocate Maninder Singh, appearing for Maran and his KAL Airways, said at the outset. Said that despite the Supreme Court ordering them to pay Rs 75 crore as interest, nothing has been paid and the time for payment should not be extended. failing to comply with which it was directed to file an affidavit disclosing the assets.
SpiceJet’s counsel said, “Seventy-five crore rupees is not a small amount.” To this, the bench said, “But these are not small parties either… These are all luxury suits.” The time cannot be extended now and the awarded amount becomes executable.” Meanwhile, SpiceJet said in a statement that the present order of the Supreme Court “is a repetition of its earlier order passed in February 2023”. “The main petition challenging the award by both the parties is pending before the Delhi High Court. The matter pertains to payment of interest on the principal amount of Rs 578 crore, the principal amount of which has already been paid. SpiceJet is in talks with Kalanithi Maran and his company KAL Airways and is determined to find an amicable solution. We are confident that this issue will be resolved through negotiations to the satisfaction of both the parties.” The matter pertains to a dispute arising out of non-issuance of warrants in favor of Maran following the transfer of ownership to Ajay Singh, the promoter and controlling shareholder of SpiceJet. Is.
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