SpiceJet gets relief from paying Rs 270 cr to Maran

Following this development, shares of SpiceJet rose as much as 6.5% and closed 5.5% higher at Rs 63 apiece.
SpiceJet gets relief from paying Rs 270 cr to Maran

NEW DELHI: Low-cost carrier SpiceJet received a major relief on Friday as a division bench of the Delhi High Court overturned its previous ruling that directed the airline to refund over Rs 270 crore to its former promoter Kalanithi Maran of the Sun Group.

A bench of Justices Yashwant Varma and Ravinder Dudeja allowed the appeals filed by SpiceJet and its managing director Ajay Singh challenging the single judge’s July 31, 2023 order. “The appeals stand allowed. Consequently, the July 31, 2023 order (of the single judge) is set aside,” the bench said.

Following this development, shares of SpiceJet rose as much as 6.5% and closed 5.5% higher at Rs 63 apiece.

The bench had earlier refused to stay the single judge’s order and had asked Maran and his company Kal Airways to respond to the appeal. SpiceJet and Singh’s counsel had earlier argued that the challenge was on the issue of 18% interest, which the tribunal had directed SpiceJet to pay.

On July 31, 2023, the single judge had upheld the award announced by the arbitral tribunal on July 20, 2018, in favour of Maran and his Kal Airways. It had said the court was barred from entering into the merits of an award unless there was an error that was apparent on the face of the record or an illegality that goes to the root of the matter. Singh had approached the single-judge bench of the high court challenging the arbitral award.

HC bench allows SpiceJet appeals

A Delhi high court bench of Justices Yashwant Varma and Ravinder Dudeja allowed the appeals filed by SpiceJet and its managing director Ajay Singh challenging the single judge’s July 31, 2023 order. Shares of SpiceJet rose as much as 6.5% and closed 5.5% higher at `63 apiece.

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