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SpiceJet to complete payment of Rs 100 cr to Kalanithi Maran by Sept 12, ET Infra

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NEW DELHI: The Delhi High Court on Monday gave low-cost airline SpiceJet and its Chairman and Managing Director (CMD) Ajay Singh time till Tuesday to pay the remaining amount toward a Rs 100 crore arbitral award to Kal Airways’ promoter Kalanithi Maran.

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 Ltd. has made a payment of Rs 77.5 crore to Kalanithi Maran and will complete the payment of Rs 100 crores tomorrow by paying Rs 22.5 crore tomorrow as per the directions of the Delhi High Court,” said the SpiceJet spokesperson.

“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,” said the spokesperson.

On Monday, Singh’s lawyer told the court they had paid Maran Rs 62.5 crore and were carrying a cheque for Rs 37.5 crore in his name.

However, counsel for Maran argued that they had time from August 24 to date to make the payment but they have delayed it.

The court then asked Singh and the airline to pay the remaining amount by the end of the day or by September 12, and listed the case for hearing next on October 3.

During the last hearing, senior advocate Maninder Singh for Maran and Kal had submitted that the judgement debtor — SpiceJet and CMD — had to file the affidavit of assets and weekly collection within one week which they have failed to file on time and the same has not been filed in a format mandated by this court.

On August 9, the court had issued notice on Kal Airways and Maran’s application seeking 50 per cent of the daily revenue collection of SpiceJet to be paid to them on a weekly basis.

Singh had then submitted that the order dated February 13 and July 7, passed by the Supreme Court is pre-emptive, conditional and self-operative which has not been complied with till date.

Additionally, he submitted that the affidavit filed by the CMD has been filed under sealed cover which has not been served to the decree holders — Kal Airways and Maran.

On the other hand, senior advocate Amit Sibal submitted that the amount calculated by them stood upto Rs 279 crore and not Rs 397 crore as argued by advocate Singh.

He further made an offer to deposit Rs 75 crore within 10 days to which advocate Singh objected and said that they had to pay this amount in April but has not paid till date.

“The court in consultation and with the consent of SpiceJet directed the company to pay Rs 100 crore by September 10, 2023. SpiceJet will honour this court’s order and make the specified payment within the prescribed time frame,” SpiceJet spokesperson said.

The court has listed the matter for hearing next on September 11.

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.

The counsel sought directions from the court for his client that the 50 per cent of the daily revenue collected by the judgement debtors be paid to decree holders on weekly basis, the affidavit of disclosure of assets be filed at the earliest, the statement of accounts be filed within one day in court and the main prayer i.e. entire arbitral awarded amount be paid to the decree holders.

On the other hand, Senior Advocate Sandeep Sethi had admitted that the orders have not been complied with by Spicejet.

However, he had said that this is a fresh application listed on Wednesday and submitted that since the matter is already directed to be listed on September 5, the matter may be heard on that date as the judgment debtor is bound by court orders.

He had also argued that there is no reason for allowing early hearing at this stage.

To which, the judge had then observed that the decree holder is not left with any other option but to move an early hearing application as the judgement debtor is not complying with the orders passed by the courts and the judgement debtor should have filed its affidavit of disclosure of assets till date.

On July 24, the high court issued notice to SpiceJet and Singh seeking urgent hearing of its enforcement petition in a case where the former is to pay approximately Rs 390 crore to it towards its interest liability under the arbitral award.

Allowing the application, Justice Khanna had directed SpiceJet and its CMD to file an affidavit disclosing all their assets before the next date of hearing, September 5, and also mandated the physical presence of Singh before it.

  • Published On Sep 12, 2023 at 08:12 AM IST

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