The Delhi High Court on Monday (July 24) pulled up SpiceJet promoter Ajay Singh for non-compliance with an asset disclosure order and ordered him to appear in person before the court at the next hearing.

This comes after the Supreme Court on July 8 refused to extend the time for making payment to media baron Kalanithi Maran and his Kal Airways in pursuance of an arbitral award of Rs 578 crore related to a share-transfer dispute.

Maran's counsel said SpiceJet has failed to comply with earlier High Court order directing for disclosure of assets and the court has the power to direct the arrest of Ajay Singh for failure to comply with the disclosure order.

Further, the Delhi High Court has issued notice to SpiceJet and Ajay Singh and posted the matter for further hearing on September 5, 2023.

Back in June, the Delhi High Court directed SpiceJet to deposit "forthwith" Rs 75 crore that has to be paid to Maran and his Kal Airways towards interest on the arbitral award.

On November 2, 2020, the High Court asked the airline to deposit around Rs 243 crore as interest in connection with the share transfer dispute with its former promoter, Maran, and Kal Airways. On November 7, 2020, the top court stayed the high court order.

On February 13 this year, the apex court said the bank guarantee of Rs 270 crore of SpiceJet must be encashed immediately and the money is paid to Maran and Kal Airways towards dues from the arbitral award.

It said it had directed SpiceJet to pay within three months Rs 75 crore to Maran and Kal Airways towards the interest component on the arbitral award. However, on May 29, the high court was informed that SpiceJet has not paid the interest amount.

SpiceJet and its promoter Ajay Singh were asked to deposit around Rs 243 crore as interest payable on Rs 578 crore, which the high court had, in 2017, asked the airline to deposit under the 2018 arbitration award in the share-transfer dispute. The high court had granted six weeks to SpiceJet to make the payment and the deadline for the same expired on October 14, 2020.

After this, Maran and his firm moved the high court for attachment of the entire shareholding of Singh in Spicejet and taking over the management for non-payment of Rs 243 crore. The top court had taken note of Spicejet's appeal and passed the interim order, staying the high court order.

Maran and Kal Airways had moved the high court over the share-transfer dispute, with SpiceJet demanding that 18 crore warrants redeemable as equity shares be transferred to them. The high court had directed SpiceJet and Singh to deposit Rs 578 crore in the high court's registry.

SpiceJet was permitted to furnish a bank guarantee for Rs 329 crore and make a cash deposit of the remaining sum before the high court. The apex court had, in July 2017, dismissed SpiceJet's appeal against the high court order.

On July 20, 2018, the arbitral tribunal rejected Maran's claim of damages of Rs 1,323 crore for not issuing the warrants to him and Kal Airways but awarded him a refund of Rs 578 crore plus interest. Maran, the owner of Sun TV Network, then moved the high court against the arbitration award.

The matter pertained to a dispute arising out of the non-issuance of warrants in favour of Maran after the transfer of ownership to Singh, the controlling shareholder of SpiceJet. The dispute started after Singh took back control of SpiceJet in February 2015 amid the airline facing a financial crisis.

Maran and Kal Airways had transferred their entire 35.04 crore equity shares in SpiceJet, amounting to a 58.46 percent stake in the airline, to its co-founder Singh in February 2015 for just Rs 2.

First Published:Jul 24, 2023 3:48 PM IST