The High Court of Delhi on Monday upheld the arbitration tribunal order, which ordered Spicejet Airlines and its Chairman & Managing Director Ajay Singh to refund Rs 579 crore plus interest to former promoter of airlines and Sun Group Chairman Kalanithi Maran.
The Single-Judge Bench of Justice Chandra Dhari Singh further rejected the petitions filed by Spicejet and its current promoter Ajay Singh against the arbitration award passed in 2018.
However, the High Court also rejected the claim made by Maran seeking Rs 1323 crore damages from Spicejet for not issuing convertible warrants and preference shares to him.
In July 2018, a three-member arbitration tribunal had rejected Maran’s claim holding that there was no breach of a share sale and purchase agreement reached between Maran and Spicejet’s current promoter Ajay Singh.
The tribunal had, however, ordered Spicejet and Ajay Singh to refund Rs 579 crore plus interest to Maran.
Earlier on July 24, the High Court had directed Managing Director and Chairman of SpiceJet Ajay Singh to personally appear before the court on the next date of hearing in relation to non-compliance of court’s 2020 order directing the airline to furnish an affidavit of its assets.
The Single-Judge Bench of Justice Yogesh Khanna passed the orders on a petition filed by Sun Group Chairman and former promoter of the airline, Kalanithi Maran, seeking urgent hearing of the enforcement petition for a 2018 arbitral award passed in his favour.
During the course of hearing, Senior Advocate Maninder Singh, representing Maran and his firm Kal Airways, apprised the High Court that in February 2023, the Supreme Court had directed SpiceJet to pay Rs 75 crore within three months towards its interest liability under the Arbitral Award.
As per Singh, the Apex Court had dismissed the airline’s application for extension of time on July 7, while making it clear that in terms of its February 13 order, the entire award became executable in entirety in the favour of Kal Airways and Maran.
The Counsel argued that SpiceJet had violated the November 4, 2020 order of the High Court, which mandated it to file the affidavit of assets.
He said the airlines was not honouring the orders passed by any of the courts and thus, its promoter was liable to be detained in civil prison as provided for under Order XXI Code of Civil Procedure 1908, for failing to comply with the order to file affidavit of assets.
Representing SpiceJet, Senior Advocate Sandeep Sethi submitted that there was no reason to allow early hearing application at this stage as the matter was already listed for September 5.
While issuing notice to SpiceJet and its promoter Ajay Singh, the High Court directed them to file an affidavit, disclosing all their assets before the next date of hearing and also mandated Singh’s physical presence before the court on the next hearing.
The matter will next be heard on September 5.
Maran and Kal Airways Private Limited were represented by Senior Advocate Maninder Singh, along with Advocates Nandini Gore, Sonia Nigam, Yash Dubey and Akarsh Sharma from Karanjawala & Co.
Senior Advocate Sandeep Sethi, along with Advocate Atul Sharma, appeared for Spicejet Limited and Ajay Singh.