Kalanithi Maran declines SpiceJet’s offer of INR 600cr cash settlement
Kalanithi Maran, former promoter of SpiceJet, and his firm KAL Airways have declined the offer by the airline to end share transfer dispute among them.
Appearing before a Bench led by Chief Justice of India N.V. Ramana, Senior Advocate Maninder Singh, for MMaran, informed the court that his client had refused SpiceJet’s offer of a total INR 600 crore in cash to settle the dispute with no room for further litigation. Singh, on the court’s query, clarified that his client had also declined an alternative offer made by the airline to disburse a certain amount, INR 100 crore, from the bank guarantee of INR 270 crore, to Mr. Maran and to fastrack the litigation. “Both offers are declined,” MSingh submitted. He explained that the total amount owed was about INR 920 crore. “Then we will hear the matter,” the CJI reacted to Singh’s submissions.
The court scheduled the next hearing on March 2. The case concerns a plea by Maran and KAL to lift a November 6, 2020 order of stay on a Delhi High Court direction to the airline to deposit INR 243 crore as interest on the prinicipal amount of INR 578 crore involved in the dispute. Senior advocate Mukul Rohatgi, for the airline, had in the last hearing said that out of the principal amount of INR 578 crore awarded in arbitration, SpiceJet had already paid INR 308 crore in cash and deposited a bank guarantee of INR 270 crore.
Rohatgi had offered to pay the bank guarantee equivalent amount of INR 270 crore in cash and top it up with additional INR 22 crore, aggregating the total payout to INR 600 crore as full and final settlement of all disputes between the parties. KAL and Maran had transferred their shareholding to Ajay Singh in December 2014. The dispute relates to non-issuance of warrants and preference shares in favour of Maran. (Source: The Hindu)