SpiceJet has taken note of the order passed by the Supreme Court of India, which declined to interfere with the earlier direction to provide a security deposit of Rs 144 crore to the court pending hearing on SpiceJet's claims. The company is examining the order and will comply with all court directions. SpiceJet would like to assure all stakeholders that this development has no impact on its day-to-day operations.
The matter arises from a share transfer agreement involving SpiceJet, its promoter Ajay Singh, KAL Airways and Kalanithi Maran. SpiceJet has paid a total of Rs 730 crore to Kalanithi Maran and KAL Airways, including the entire principal amount of Rs 580 crore and Rs 150 crore towards interest. The remaining amount, as directed by the court, will be deposited in court in accordance with the arbitration process.
The amount being paid by Spicejet is in the nature of a deposit held by the Court while SpiceJet's appeal is being decided by the Court. SpiceJet remains confident of receiving a potential refund of Rs 449 crore on the culmination of this legal process.
Claims of over Rs 1,300 crore in damages made by KAL Airways and Kalanithi Maran have been rejected and these orders have attained finality.
All challenges to the arbitral award by KAL Airways and Kalanithi Maran have also been dismissed. SpiceJet's claims against KAL Airways and Kalanithi Maran for a refund of amounts paid is being heard by the Delhi High Court and there is a prima facie finding of the Court in favour of SpiceJet.