Aviation News

SpiceJet pays Kal Airways Rs 100 crore after court order, Infra News, ET Infra


Low-cost airline SpiceJon Tuesday paid Kal Airways and its promoter Kalanithi Maran Rs 100 crore towards an arbitral award, a day after the Delhi High Court ordered it to complete the payment by September 12.

“SpiceJet has completed the payment of INR 100 crore to Kal Airways Private Limited. While a payment of Rs 77.5 crore had been made to Kal Airways till September 11, the remaining Rs 22.5 Crore was paid today,” the company said in a statement.

On August 24, the court had asked SpiceJet and Singh to pay Rs 100 crore to Maran by September 10, failing which the court had said it might consider the attachment of their properties.

“SpiceJet acknowledges the legal process and is committed to complying with all court directives and obligations in the Credit Suisse case and will make the payment of $1.5 million as per the court directive. Till date, SpiceJet has already paid a total of $8 million to Credit Suisse,” the compay’s spokesperson had said earlier.

On August 9, as Justice Yogesh Khanna directed the airline and the CMD to file an affidavit disclosing their assets and their revenue collection within one weeks’ time, he had mandated Singh’s presence on the next date of hearing.

Considering the willful default and lackadaisical attitude of SpiceJet and Singh, the judge had reiterated his July 24 order and advanced the hearing.

Singh had submitted that in view of the willful defaults at every stage and laid back attitude it is just and fair that the Spicejet, and Singh should deposit Rs 393 crore and file their affidavit of assets before the next date of hearing.

On Monday, the Supreme Court ordered the Ajay Singh-led airline to pay $1.5 million to Credit Suisse, and warned the budget airline of unspecified “drastic action” at the next hearing if it failed to do so.

A third of the amount is part of a monthly settlement plan SpiceJet had previously agreed with Credit Suisse, and the rest are unpaid dues to the bank that have accrued since last year after the airline failed to keep up with the payment schedule.

If SpiceJet fails to pay, the Supreme Court will take “drastic action” at the next hearing on Sept. 22, it said.

“Enough of this dilly-dally business … We are not bothered even if you die,” one of the two judges said during the hearing, which was attended by SpiceJet chief Ajay Singh.

(With agency inputs)

  • Published On Sep 12, 2023 at 04:05 PM IST

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