SpiceJet: Shock to SpiceJet in the matter of paying 579 crores including interest to Maran, did not get relief from the High Court.
The Delhi High Court refused to stay the single judge’s order directing SpiceJet and its promoter Ajay Singh to return Rs 579 crore plus interest to media baron Kalanithi Maran.
A division bench of Justice Yashwant Verma and Justice Dharmesh Sharma issued notice to Maran and his company Kal Airways and sought their response on an appeal filed by Singh and SpiceJet airline challenging the July 31 order of the single judge.
The High Court dismissed the application seeking stay on the order of the single judge bench, saying that the July 7 order of the Supreme Court compels it to do so and listed the appeal for further hearing on October 7.
“No interim order can possibly be passed in favor of the appellants in the light of the directions of the Supreme Court and the order dated July 7, which absolves them of the obligations arising out of the two orders (of the apex court),” the bench said. Consequently the application is rejected. The Supreme Court had on July 7 refused to extend the time given to SpiceJet to pay Maran and Kal Airways.
Refusing to extend time, the Delhi High Court had on June 1 directed SpiceJet to immediately deposit Rs 75 crore as interest on the arbitration award of Maran and his company to Airways.
During the hearing, senior advocate Amit Sibal, appearing for SpiceJet and Singh, argued that their challenge was on the issue of 18 per cent interest which the tribunal had directed SpiceJet to pay.
He said SpiceJet could not pay Rs 75 crore to Maran due to paucity of funds, not that it did not want to pay.
SpiceJet said in a statement, “We look forward to an early resolution of the appeal. We are committed to presenting our case diligently and respectfully, seeking a just and fair resolution.
Maran and Kal Airways were represented by senior advocate Maninder Singh and law firm Karanjawala & Co.
The single judge had on July 31 upheld the award of the arbitration tribunal on July 20, 2018 in favor of Maran and Kaal Airways.
