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SpiceJet to Deposit INR 144 Cr as Supreme Court Rejects Plea in Share Row

SpiceJet has stated it will comply with a Supreme Court order directing it to deposit INR 144 crore, related to a share transfer dispute. The airline emphasizes this order does not affect its daily operations, noting it has already paid INR 730 crore to the opposing parties. Earlier damage claims of over INR 1300 crore by KAL Airways and Kalanithi Maran have been rejected. SpiceJet is now pursuing a counter-claim for a potential refund of INR 449 crore, which is currently before the Delhi High Court.

Key Points: SpiceJet Supreme Court Order: INR 144 Crore Deposit Mandated

  • Supreme Court upholds deposit order
  • Dispute over share transfer agreement
  • SpiceJet has paid INR 730 crore already
  • Claims for INR 1300 crore damages rejected
  • Airline eyes potential INR 449 crore refund
2 min read

SpiceJet to comply with Supreme Court order, deposit INR 144 crore in share transfer dispute

SpiceJet will comply with a Supreme Court order to deposit INR 144 crore in a long-running share transfer dispute with Kalanithi Maran and KAL Airways.

"SpiceJet would like to assure all stakeholders that this development has no impact on its day-to-day operations. - Airline Statement"

New Delhi, February 27

SpiceJet has taken note of the order passed by the Supreme Court of India, which declined to interfere with the earlier direction to deposit INR 144 crore, and said that it will comply with all court directions.

According to a statement issued by the airline, the company is examining the order and will comply with all court directions. SpiceJet would like to assure all stakeholders that this development has no impact on its day-to-day operations.

The matter arises from a share transfer agreement involving SpiceJet, its promoter Ajay Singh, KAL Airways and Kalanithi Maran.

SpiceJet has paid a total of INR 730 crore to Kalanithi Maran and KAL Airways, including the entire principal amount of INR 580 crore and INR 150 crore towards interest. The remaining amount, as directed by the court, will be deposited in court in accordance with the arbitration process.

Claims of over INR 1,300 crore in damages made by KAL Airways and Kalanithi Maran have been rejected, and these orders have attained finality.

All challenges to the arbitral award by KAL Airways and Kalanithi Maran have also been dismissed.

SpiceJet's claims against KAL Airways and Kalanithi Maran for a refund of amounts paid are being heard by the Delhi High Court, and there is a prima facie finding of the Court in favour of SpiceJet.

SpiceJet remains confident of receiving a potential refund of INR 449 crore on the culmination of this legal process.

- ANI

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Reader Comments

S
Sarah B
This is a positive step for corporate governance. The courts have done well to ensure the arbitration process is followed. The fact that the massive damage claims were rejected shows the original dispute was likely inflated. Hope SpiceJet gets its refund soon.
A
Arjun K
Honestly, these corporate legal battles go on for years while common passengers face the brunt with delays and service issues. They say day-to-day ops won't be impacted, but let's see. I just booked a SpiceJet flight for next month, fingers crossed! 🤞
P
Priya S
The amount of money involved is staggering – over 730 crore paid already! While compliance is good, one has to ask how such large disputes arise in the first place. Better due diligence during share transfers could save crores and years of court time. A lesson for all businesses.
K
Karthik V
Respectfully, while they are complying now, the fact that it reached the Supreme Court shows there was resistance earlier. Prompt adherence to legal awards would build more trust. That said, the prima facie finding in their favour for a refund is a strong point. Hope the High Court wraps it up quickly.
M
Michael C
The Indian aviation sector needs stability. Legal clarity in these high-stakes promoter disputes is crucial for investor confidence. Glad to see the judicial process reaching conclusive stages. A potential ₹449 crore refund would be a significant boost for SpiceJet's balance sheet.

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