Delhi High Court Retains Arbitral Award in Kalanithi Maran’s favour, Rules against SpiceJet
Ten News Network
New Delhi, 31st July 2023: Delhi High Court refused to interfere in the 2018 Arbitral Award, which ordered SpiceJet and its promoter Ajay Singh to refund Rs 579 crore plus interest to former promoter Kalanithi Maran, in a major judgement on Monday.
The bench, led over by Justice Chandra Dhari Singh, upheld the arbitral award rendered in favour of KAL Airways and Maran on July 20, 2018.
The Arbitral Award awarded decree holders Kal Airways and Kalanithi Maran a refund of Rs. 308 crore for the warrants and Rs. 270 crore for the cumulative redeemable preference shares (CRPS) in the amount of Rs. 308 crore.
They were also given interest of 12% for pendente lite and 18% from the last due date if SpiceJet and Mr. Ajay Singh failed to make the payments within two months of the award date.
SpiceJet and Ajay Singh had filed a petition to have the award overturned. The Delhi High Court, however, dismissed the petition on Monday, finding that there was no reason to tamper with the arbitral verdict.
The legal fight began back in January 2015, when Ajay Singh, the current owner of SpiceJet, purchased the airline from Kalanithi Maran after it had been grounded for months. In 2017, Maran and KAL Airways petitioned the Delhi High Court for the transfer of 180 million warrants redeemable for equity shares.
In July, the Supreme Court ordered SpiceJet to pay Maran the entire arbitral award of Rs 380 crore, highlighting the need of conducting business with “commercial morality.”