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SpiceJet has been ordered by the Delhi High Court to pay ₹242.93 crore to KAL Airways and Kalanithi Maran, the previous owners, within six weeks. In December 2014, KAL and Maran had transferred their shareholding to Ajay Singh, who is currently the Chairman and Managing Director of the Delhi-based low-cost airline.
“In the event the amount is not deposited by the judgment debtors (SpiceJet and Another) within the time granted, the decree holders (KAL Airways and Maran) shall be at liberty to revive their prayer seeking directions to the joint debtors to maintain status quo with respect to their shareholding,” said an oral order passed by Justice Rekha Palli on September 2.
The case relates to 2013, when SpiceJet faced substantial financial difficulties. Maran, who wanted to revive the company, then entered into a sale purchase agreement (SPA) with SpiceJet and ‘Another’ (Ajay Singh). Besides other mutually agreed upon arrangements between the parties, KAL Airways and Maran were to be allotted certain warrants and non-convertible redeemable cumulative preference shares (CRPS) in two tranches.
“As the decree holders were not issued the warrants and the CRPS in accordance with the obligations under the SPA, the DHs invoked arbitration,” the court order said.
When contacted, a SpiceJet spokesperson said: “We are reviewing the court order.”
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