Delhi High Court Upholds Rs 144 Crore Deposit Order Against SpiceJet in Maran Case
Delhi High Court Rejects SpiceJet's Review Plea, Imposes Rs 50,000 Cost
The Delhi High Court on Monday dismissed the review pleas filed by SpiceJet and its promoter, Ajay Singh, seeking a reconsideration of an earlier order to deposit Rs 144 crore in connection with its legal dispute with media baron Kalanithi Maran and Kal Airways.
The court's decision follows a previous order on January 19, which directed SpiceJet and Singh to deposit Rs 144 crore with the registry within six weeks against an admitted liability of Rs 194 crore. The deadline was later extended by four weeks on March 18.
SpiceJet and Singh had sought reconsideration of the March 18 direction on several counts, including financial distress amid the ongoing war in West Asia. However, the court rejected their pleas, imposing a cost of Rs 50,000 on the airline and Singh.
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The dispute between SpiceJet, Maran, and Kal Airways arises from a disagreement regarding the non-issuance of warrants in favor of Maran after the transfer of ownership to Singh, the controlling shareholder of SpiceJet. The dispute started in February 2015, when Singh took back control of the airline amid a financial crisis.
Timeline of Key Events
| Date | Event |
|---|---|
| February 2015 | Singh takes back control of SpiceJet amid financial crisis |
| February 2015 | Maran and Kal Airways transfer 35.04 crore equity shares to Singh |
| May 2024 | Division bench sets aside single judge bench order upholding arbitral award |
| July 31, 2023 | Single judge bench order upheld arbitral award asking SpiceJet and Singh to refund Rs 579 crore plus interest |
| January 19 | Court directs SpiceJet and Singh to deposit Rs 144 crore within six weeks |
| March 18 | Time to make deposit extended by four weeks |
| Monday | Delhi High Court dismisses SpiceJet's review plea and imposes Rs 50,000 cost |
Investor Takeaway
SpiceJet's financial situation may be impacted by the court's order to deposit Rs 144 crore.
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