Delhi HC extends SpiceJet's deadline for Rs 1 bn payment to Maran
AVIATION & AIRPORTS

Delhi HC extends SpiceJet's deadline for Rs 1 bn payment to Maran

The Delhi High Court has granted low-cost airline SpiceJet and its Chairman and Managing Director (CMD) Ajay Singh an extension until Tuesday to settle the outstanding amount of a Rs 1 billion arbitral award owed to Kal Airways' promoter, Kalanithi Maran. This decision comes after the court's previous directive on August 24, which had given SpiceJet and Singh until September 10 to make the payment, warning of potential property attachment if they failed to comply.

According to a statement from SpiceJet's spokesperson, "SpiceJet has paid Rs 775 million to Kalanithi Maran and will fulfil the remaining Rs 1 billion payment tomorrow by contributing Rs 225 million as per the Delhi High Court's instructions."

The spokesperson further emphasised SpiceJet's commitment to adhering to all court orders and obligations related to the Credit Suisse case, noting that the airline would make a $1.5 million payment as per the court's directive. To date, SpiceJet has already paid a total of $8 million to Credit Suisse.

During the recent court hearing, Singh's legal representative disclosed that they had already remitted Rs 625 million to Maran and were carrying a Rs 375 million check in his name. However, Maran's counsel argued that SpiceJet had ample time since August 24 to fulfil the payment, and the delay was unwarranted.

Consequently, the court instructed Singh and the airline to settle the remaining amount either by the end of the day or by September 12, with the case scheduled for the next hearing on October 3.

In previous proceedings, senior advocate Maninder Singh, representing Maran and Kal, had asserted that SpiceJet and its CMD were required to submit an affidavit of assets and weekly collection within one week, which they had failed to do in a timely manner and in the court-mandated format.

On August 9, the court had issued notice on Kal Airways and Maran's application, requesting 50% of SpiceJet's daily revenue collection to be paid to them on a weekly basis. Singh had argued that the orders issued by the Supreme Court on February 13 and July 7 had not been complied with.

Amit Sibal, another senior advocate, contended that the amount owed stood at Rs 2.79 billion, rather than the Rs 3.97 billion argued by advocate Singh. He made an offer to deposit Rs 750 million within 10 days, but this was met with objection, as it was originally due in April but remained unpaid.

SpiceJet's spokesperson reiterated the company's commitment to comply with the court's order to pay Rs 1 billion by September 10, 2023. The court has scheduled the next hearing for September 11.

Justice Yogesh Khanna, on August 9, had instructed SpiceJet and Singh to provide an affidavit disclosing their assets and revenue collection within one week and mandated Singh's presence at the next hearing. Given SpiceJet and Singh's apparent willful default and lax attitude, the judge advanced the hearing.

Singh proposed that, due to the defaults and delays, SpiceJet and Singh should deposit Rs 3.93 billion and file their asset disclosure affidavit before the next hearing. He sought court directions for 50% of the daily revenue collected by SpiceJet to be paid to the decree holders on a weekly basis, prompt asset disclosure, same-day filing of account statements in court, and payment of the entire arbitral award amount to the decree holders.

Senior Advocate Sandeep Sethi admitted that SpiceJet had not complied with the orders but argued that the matter was already set for a hearing on September 5, with no reason to expedite it further.

In response, the judge noted that the decree holder had no choice but to seek an early hearing, as the judgment debtor was not complying with court orders, including the timely filing of asset disclosure affidavits.

On July 24, the high court issued notice to SpiceJet and Singh, urging an urgent hearing of its enforcement petition regarding a case where SpiceJet owed approximately Rs 3.9 billion for interest liability under the arbitral award. Justice Khanna approved the application, directing SpiceJet and Singh to file an affidavit disclosing all their assets before the next hearing on September 5, and mandating Singh's physical presence.

The Delhi High Court has granted low-cost airline SpiceJet and its Chairman and Managing Director (CMD) Ajay Singh an extension until Tuesday to settle the outstanding amount of a Rs 1 billion arbitral award owed to Kal Airways' promoter, Kalanithi Maran. This decision comes after the court's previous directive on August 24, which had given SpiceJet and Singh until September 10 to make the payment, warning of potential property attachment if they failed to comply.According to a statement from SpiceJet's spokesperson, SpiceJet has paid Rs 775 million to Kalanithi Maran and will fulfil the remaining Rs 1 billion payment tomorrow by contributing Rs 225 million as per the Delhi High Court's instructions.The spokesperson further emphasised SpiceJet's commitment to adhering to all court orders and obligations related to the Credit Suisse case, noting that the airline would make a $1.5 million payment as per the court's directive. To date, SpiceJet has already paid a total of $8 million to Credit Suisse.During the recent court hearing, Singh's legal representative disclosed that they had already remitted Rs 625 million to Maran and were carrying a Rs 375 million check in his name. However, Maran's counsel argued that SpiceJet had ample time since August 24 to fulfil the payment, and the delay was unwarranted.Consequently, the court instructed Singh and the airline to settle the remaining amount either by the end of the day or by September 12, with the case scheduled for the next hearing on October 3.In previous proceedings, senior advocate Maninder Singh, representing Maran and Kal, had asserted that SpiceJet and its CMD were required to submit an affidavit of assets and weekly collection within one week, which they had failed to do in a timely manner and in the court-mandated format.On August 9, the court had issued notice on Kal Airways and Maran's application, requesting 50% of SpiceJet's daily revenue collection to be paid to them on a weekly basis. Singh had argued that the orders issued by the Supreme Court on February 13 and July 7 had not been complied with.Amit Sibal, another senior advocate, contended that the amount owed stood at Rs 2.79 billion, rather than the Rs 3.97 billion argued by advocate Singh. He made an offer to deposit Rs 750 million within 10 days, but this was met with objection, as it was originally due in April but remained unpaid.SpiceJet's spokesperson reiterated the company's commitment to comply with the court's order to pay Rs 1 billion by September 10, 2023. The court has scheduled the next hearing for September 11.Justice Yogesh Khanna, on August 9, had instructed SpiceJet and Singh to provide an affidavit disclosing their assets and revenue collection within one week and mandated Singh's presence at the next hearing. Given SpiceJet and Singh's apparent willful default and lax attitude, the judge advanced the hearing.Singh proposed that, due to the defaults and delays, SpiceJet and Singh should deposit Rs 3.93 billion and file their asset disclosure affidavit before the next hearing. He sought court directions for 50% of the daily revenue collected by SpiceJet to be paid to the decree holders on a weekly basis, prompt asset disclosure, same-day filing of account statements in court, and payment of the entire arbitral award amount to the decree holders.Senior Advocate Sandeep Sethi admitted that SpiceJet had not complied with the orders but argued that the matter was already set for a hearing on September 5, with no reason to expedite it further.In response, the judge noted that the decree holder had no choice but to seek an early hearing, as the judgment debtor was not complying with court orders, including the timely filing of asset disclosure affidavits.On July 24, the high court issued notice to SpiceJet and Singh, urging an urgent hearing of its enforcement petition regarding a case where SpiceJet owed approximately Rs 3.9 billion for interest liability under the arbitral award. Justice Khanna approved the application, directing SpiceJet and Singh to file an affidavit disclosing all their assets before the next hearing on September 5, and mandating Singh's physical presence.

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