The Delhi High Court, on Thursday, directed SpiceJet Chairman and Managing Director Ajay Singh and the company to pay ₹100 crore to the Marans by September 10, according to their rights and contention. Failure to comply may lead to the court attaching the company’s last quarter profits.

SpiceJet’s CMD appeared before Justice Yogesh Khanna after being ordered due to non-compliance. The case will be heard again on September 11. After the court proceedings, Ajay Singh told businessline that “SpiceJet will honour the Delhi High Court’s order and make the payment before September 10”.

Maran’s lawyer, senior advocate Maninder Singh, informed the court that the airline and Singh owed them ₹397 crore. He noted that filed affidavits of assets and liabilities weren’t in the prescribed format. The senior advocate presented SpiceJet’s profit and loss statement, mentioning a net profit of ₹204 crore for April-June quarter. He demanded upfront payment to Marans from this profit and 50 per cent of future profits for repayment.

This relates to Sun Group’s Chairman Kalanithi Maran’s application for the execution of an arbitral award favouring him against SpiceJet. Singh was summoned after Maran’s claim of missing affidavits.

SpiceJet, represented by Amit Sibal, argued challenges due to pandemic and Boeing 737 Max grounding. Insolvency was seen as detrimental, risking jobs. “We have been struggling to stay afloat because of all these incidents. If we were to go to insolvency, 10,000 jobs would be at stake and the petitioner will be an operational creditor who will at the least of the chain for payments of dues.”

Buys time

Lawyers representing Ajay Singh requested more time for repayment, but the court focussed on Maran’s dues. SpiceJet lost a 2018 arbitration case over share transfers from Kalanithi Maran to new management in 2015. The Supreme Court had also summoned Ajay Singh to defend unpaid dues allegations by Credit Suisse.

Both cases will be heard next on September 11.

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