CHENNAI: The Delhi High Court on Thursday refused to stay a single-judge order upholding an arbitral award directing Spicejet and its Chairman and managing director Ajay Singh to refund Rs 579 crore plus interest to Sun Group Chairman Kalanithi Maran.
The court directed Singh to pay Rs 100 crore to Maran and his investment vehicle Kal Airways by September 10, failing which the court will consider attaching assets of SpiceJet. A division bench of Justices Yashwant Verma and Dharmesh Sharma issued notice and sought a response of Maran and Kal Airways on an appeal filed by Singh and Spicejet challenging the single-judge bench order of July 31. The HC listed the appeal for further hearing on October 31. SpiceJet argued that it is struggling financially and it will not help anyone if it goes insolvent.
On July 31, the single judge upheld the award announced by the arbitration tribunal in July 2018 in favour of Maran and Kal Airways. The HC had said the petitioners had failed to substantiate the grounds for setting aside the arbitral award and dismissed the two petitions by Spicejet and Singh.
“We are hopeful for an expeditious resolution of the appeal. We are committed to presenting our matter diligently and respectfully, seeking a just and fair resolution,” SpiceJet Spokesperson said in a statement.
SpiceJet will honour the order and make the specified payment within the prescribed time frame, it added referring to the order directing to pay Rs 100 crore. The case pertains to non-issuance of warrants in favour of Maran after the transfer of ownership to Singh. Maran in 2015 transfered 58.46 % stake in SpiceJet to Singh for Rs 2 along with Rs 1,500 crore debt liability when the carrier was grounded.