The Supreme Court on February 13 directed SpiceJet to encash a bank guarantee and pay the airline’s former promoter Kalanithi Maran Rs 270 crore within two weeks and also Rs 75 crore in interest dues.

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For an arbitral award of Rs 579 crore, SpiceJet claims to have settled the principal amount of Rs 308 crore in cash and offered Rs 270 crore in bank guarantees.

Maran, however, argues that the total amount due is Rs 940 crore and that interest amounts to Rs 362 crore. In July 2018, an arbitration panel had directed SpiceJet to pay Rs 579 crore to Maran.

During the Supreme Court hearing, SpiceJet lawyer said Marans were free to reverse the transaction and take the airline back.

Meanwhile, the top court has allowed the airline to argue for a lower interest burden in the Delhi High Court.

"With regards to the Supreme Court order in the matter relating to the dispute between SpiceJet and its former promoter Kalanithi Maran and his firm KAL Airways, it is clarified that the overall amount in dispute is Rs 578 crore of which Rs 308 crore has already been deposited. The remaining amount of Rs 270 crore is reserved with the company in cash against which a bank guarantee has been given. This amount of Rs 270 crore will be comfortably discharged as per the direction of the Hon’ble Supreme Court," a SpiceJet spokesperson said, adding that the additional amount of Rs 75 crore will be paid within the period of three months as per the directions of the SC.

The drawn-out dispute between SpiceJet and Kalanithi Maran started in January 2015 when Kal Airways offered a 58.46 percent stake in SpiceJet to Ajay Singh, the principal shareholder and chairman and managing director of SpiceJet, for merely Rs 2 as the airline was hit by financial troubles. SpiceJet stock was priced at Rs 16.30 a share during this deal.

The following year in March, Maran moved Delhi High Court alleging a breach of the agreement by Singh for not issuing him enough share warrants and preference shares despite Rs 679 crore infusion.

The HC then asked Maran and Singh to set up an arbitration tribunal and directed that SpiceJet deposit Rs 579 crore. In July 2017, SpiceJet moved SC against the HC order but SC upheld the order.

In July next year, an arbitration panel rejected the Rs 1,300 crore damages claim of Maran and KAL Airways against SpiceJet. In September 2020, Delhi HC asked SpiceJet to deposit Rs 243 crore as interest payment, which got a stay from the SC. In February 2022, Maran approached SC to lift the stay on a Delhi HC order.

The Supreme Court had then suggested the two parties to settle share transfer dispute over talks.

First Published:Feb 13, 2023 5:55 PM IST