Delhi HC orders SpiceJet to pay Rs 500 mn in Maran-KAL airways dispute
AVIATION & AIRPORTS

Delhi HC orders SpiceJet to pay Rs 500 mn in Maran-KAL airways dispute

The Delhi High Court instructed SpiceJet, led by Ajay Singh, to make a payment of Rs 500 million to KAL Airways within six weeks. This ruling is in connection with an arbitration award obtained by the airline's former promoter, Kalanithi Maran, and KAL Airways.

The court's directive is contingent upon the resolution of an appeal filed by SpiceJet, challenging the interest amount specified in the arbitration award. The case is scheduled for further hearing on May 14.

The origin of the case can be traced back to January 2015, when Ajay Singh, the current owner of the airline, repurchased it from Maran after a prolonged grounding period caused by financial constraints.

The arbitration tribunal had previously mandated Maran to pay Rs 290 million in penal interest to Singh and the airline. Conversely, Singh was instructed to reimburse Rs 5.79 billion plus interest to Maran.

Established in 2016 by the Delhi High Court to address the share transfer dispute, the tribunal determined that there was no violation of the share sale and purchase agreement signed between Maran and the present promoter Singh in late January 2015.

In February 2015, Kalanithi Maran and Kal Airways transferred their 58.46% stake in SpiceJet to Ajay Singh for Rs 2, along with a debt liability of Rs 15 billion, following the airline's grounding due to severe financial constraints.

Ajay Singh, the initial co-founder and current chairman and managing director of the airline, entered into an agreement where Maran and Kal Airways claimed to have paid SpiceJet Rs 6.79 billion for the issuance of warrants and preference shares. However, in 2017, Maran approached the Delhi High Court, alleging that SpiceJet had failed to issue the promised convertible warrants and preference shares, and had not returned the funds.

The Delhi High Court instructed SpiceJet, led by Ajay Singh, to make a payment of Rs 500 million to KAL Airways within six weeks. This ruling is in connection with an arbitration award obtained by the airline's former promoter, Kalanithi Maran, and KAL Airways. The court's directive is contingent upon the resolution of an appeal filed by SpiceJet, challenging the interest amount specified in the arbitration award. The case is scheduled for further hearing on May 14. The origin of the case can be traced back to January 2015, when Ajay Singh, the current owner of the airline, repurchased it from Maran after a prolonged grounding period caused by financial constraints. The arbitration tribunal had previously mandated Maran to pay Rs 290 million in penal interest to Singh and the airline. Conversely, Singh was instructed to reimburse Rs 5.79 billion plus interest to Maran. Established in 2016 by the Delhi High Court to address the share transfer dispute, the tribunal determined that there was no violation of the share sale and purchase agreement signed between Maran and the present promoter Singh in late January 2015. In February 2015, Kalanithi Maran and Kal Airways transferred their 58.46% stake in SpiceJet to Ajay Singh for Rs 2, along with a debt liability of Rs 15 billion, following the airline's grounding due to severe financial constraints. Ajay Singh, the initial co-founder and current chairman and managing director of the airline, entered into an agreement where Maran and Kal Airways claimed to have paid SpiceJet Rs 6.79 billion for the issuance of warrants and preference shares. However, in 2017, Maran approached the Delhi High Court, alleging that SpiceJet had failed to issue the promised convertible warrants and preference shares, and had not returned the funds.

Next Story
Products

Viva ACP Launches FR A1-Rated Honeycomb Panels for Fire Safety

Viva, Asia’s largest manufacturer and supplier of aluminium composite panels (ACP) introduced its FR A1-rated Honeycomb Panels, setting a new industry benchmark for fire safety and architectural excellence. Engineered to deliver exceptional performance, these panels combine advanced fire-resistance technology with aesthetic versatility, offering a revolutionary solution for safety-critical environments.The FR A1 rating represents the highest standard of fire resistance under the European Standard EN 13501-1, signifying non-combustibility and zero contribution to fire, smoke, or toxic emissio..

Next Story
Real Estate

Almal Real Estate Expands into Commercial, Global Markets

Almal Real Estate Development is soon to announce its upcoming expansion into new verticals and international markets as part of its strategic growth plans for 2030. The company, known for its innovative luxury residential and hospitality developments, is preparing to diversify into the commercial sector with the introduction of The Smart Space, a network of business centers in UAE featuring five-star amenities. Additionally, Almal is entering new markets in Bali and Thailand as a community developer, focusing on villa and townhouse projects.The expansion into the commercial real estate sector..

Next Story
Infrastructure Urban

NABARD Approves Rs 9.03 Billion for 127 Projects in Himachal

The Himachal Pradesh government has secured approval from the National Bank for Agriculture and Rural Development (NABARD) for 127 projects worth Rs 9.03 billion for the 2024-25 fiscal, Chief Minister Sukhvinder Singh Sukhu announced. During a meeting with MLAs from Kangra, Kullu, Kinnaur, Solan, Chamba, Bilaspur, and Lahaul-Spiti districts to discuss priorities for the 2025-26 budget, Sukhu said the approved projects include 50 MLA-priority schemes under the Public Works Department, valued at Rs 4.12 billion, and 23 MLA-priority schemes under the Jal Shakti Vibhag, costing Rs 1.79 billio..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?