Sun Network CMD Kalanithi Maran and others filed the suit
The Delhi High Court has set aside a single judge bench order which had confirmed an arbitral award that directed SpiceJet and promoter Ajay Singh to refund ₹579 crore plus interest to media tycoon Kalanithi Maran.
Ajay Singh and SpiceJet have lodged appeals against the single judge’s order of 31 July 2023, before a division bench comprising Justices Yashwant Varma and Ravinder Dudeja.
“The appeals stand allowed. Consequently the July 31, 2023 order (of the single judge) is set aside,” the bench said.
The appellate court had earlier refused to stay order passed by the single judge and had sought response from Mr. Maran also his company Kal Airways.
SpiceJet argued through its counsel that his challenge was on account of 18% interest awarded by tribunal for payment by it to Spicejet.
On July 31, 2023, this one-man bench delivered its verdict in favour of Maran and his company Kal Airways upholding the arbitration award announced on July 20, 2018.
It said that unless there was either evident mistake or fundamental illegality vitiating an award, no examination was permissible into merits of an award by any court.
Mr. Singh had approached a one-judge bench of high court challenging this arbitral award
Accordingly Mr. Singh bought back grounded airline from Mr. Maran in January 2015 after selling it to him earlier when it went out due to shortage of resources for months in early part of this year
Also according to tribunal while penal interest amounting ₹29 crore should be paid by Mr. Maran towards both himself and airline, ₹579 crore plus interest must come from Mr. Singh back to him.
As per the tribunal established under Delhi high court’s orders in relation share transfer dispute between them, there was no breach of share sale and purchase agreement dated 30th January 2015 between Maran and current promoter Mr. Singh
However, the tribunal rejected Mr. Maran’s claim for ₹1,323 crore damages from Gurugram based carrier.
In February 2015, Kal Airlines transferred their 58.46% stake in SpiceJet to Mr. Singh for ₹2 and also took over ₹1,500 crore debt burdens when it was grounded due to cash crunch.
An investment vehicle of Sun Network, Mr. Maran’s company Kal Airways had 58.46% stake in Spicejet sold to the airline co-founder at a price of INR 2 per share along with total liability of INR 1500 crores by way of loan.
He is the first co-founder-cum-chairman-cum-MD this airline has ever had.
During this time Mr. Maran together with his firm paid some amount to Spicejet worth rupees six hundred seventy nine million for issuing warrants and preference shares.
However, in 2017 Mr. Maran approached the Delhi High Court alleging that SpiceJet did not issue these convertible warrants or preference shares as well as return his money back to him.
