Anurag Kumar
SpiceJet has been ordered by the Delhi High Court to pay 380 crore to its former promoter, Kalanithi Maran of the Sun Group, and to submit an affidavit of assets within four weeks.
This decision is a setback for the airline, which astonished with a fourfold increase in quarterly earnings to 106.8 crore in the December quarter, and comes amid a dispute with aircraft lessors over payments. The order was reviewed by the Mint.
The May 29, 2023 judgment by the High Court stems from a lengthy dispute over contractual obligations between the Maran family and the current promoter, Ajay Singh, and SpiceJet. Maran sued SpiceJet in 2017 for allegedly causing losses by neglecting to issue him and his KAL Airways convertible warrants and preference shares.
After a lengthy court battle, SpiceJet paid Maran Rs. 579.08 crore in principal, but the interest portion remained unpaid. The interest was 242 crores in October 2020, 362 crores by February 2023, and 380 crores by the end of the period.
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A spokesperson for SpiceJet stated that the airline is already in negotiations with Maran and KAL Airways for a comprehensive settlement. “We are confident that this dispute will be resolved amicably as we have already paid the full principal amount awarded by an arbitral tribunal.”
Sun Group remained silent.
SpiceJet shares were trading at 26.85, up 3.95 percent.
