TBM Staff - Mumbai In a recent legal development, the Delhi High Court has instructed low-cost carrier SpiceJet Ltd to make a payment of INR 50 crore to its former promoter Kalanithi Maran and KAL Airways within six weeks.
This directive is in connection to an arbitral award issued in 2018, with the court stipulating that the payment is contingent on the outcome of SpiceJet’s appeal challenging the interest amount determined by the arbitral tribunal. The next hearing for this case is scheduled for May 14.
The dispute originated from a share transfer disagreement between SpiceJet’s CMD Ajay Singh, and Kalanithi Maran along with KAL Airways.
Despite SpiceJet’s appeal against the interest payable to Maran, the court has emphasized the obligation to make the payment within the specified timeline. The airline had previously expressed financial challenges, asserting it was ‘struggling to stay afloat’ after being instructed to make a payment to its former owner.
The court has refrained from issuing an attachment order for the funds, expressing concern that such action could adversely impact the airline’s operations. The case underscores the ongoing legal complexities surrounding the share transfer dispute and the financial implications for SpiceJet.
