Shares in SpiceJet jumped about 6 percent on Monday after an arbitration tribunal rejected former promoter Kalanithi Maran's claim of damages and repossession of control of the airline.

Maran of Sun Group wants to takeover the reigns from current promoter Ajay Singh, who bought it back from him after SpiceJet was grounded for months. Maran will soon be approaching the Delhi high court to regain control of SpiceJet.

SL Narayanan, CFO of Sun Group spoke to CNBC-TV18 about the recent developments.

“Clearly the share purchase agreement has not been carried out in its full spirit and believe they have strong case on restitution. So will approach the Delhi HC as soon as ready,” Narayanan said on Monday.

When asked why he thought restitution applied in this case, he said the Section 65 clearly applies and the whole agreement should fall and the parties ought to be restored to their earlier positions.

Giving some numbers, he said the total amount that was ruled by Delhi HC, the division bench was Rs 579 crore and it was Rs 250 crore to be secured through cash deposits and another Rs 329 crore to be secured by a bank guarantee, that has been done and that is what now the arbitrators have ordered to be repaid.

“The more substantial part was the 18.91 crore warrants and had that been complied with, we would have got about 22 percent of the fully diluted equity,” said Narayanan, adding that that was the essential part of the whole deal.

However, since the BSE says the warrants cannot be done, the share purchase agreement itself has to be reversed, said Narayanan.

First Published:Jul 23, 2018 11:45 AM IST