The division bench of Delhi High Court on Thursday asked SpiceJet and its chairman and managing director, Ajay Singh to pay the former promoter of the airline, Kalanithi Maran Rs 100 crore by September 10 to show their bonafides towards settling their dues.
The court also warned the carrier and Singh that it may attach the company’s assets if the payment is not made by September 10. The court has fixed September 11 as the next date for the hearing.
A SpiceJet spokesperson said that the carrier will “will honour the Delhi High Court’s order and make the specified payment within the prescribed timeframe”.
On Thursday, Singh had appeared in person before the court pursuant to being ordered to be present for non-compliance of its order.
During the hearing, Maran’s counsel Maninder Singh told the court that the airline and Singh owed them Rs 397 crore now. He also said that while the company and Singh have filed an affidavit of assets and liabilities, they are not in the format prescribed by law.
Singh’s counsel, Amit Sibal argued that the company is now struggling to stay afloat and if it goes into insolvency it would not benefit anybody.
The court, however, made it clear that it was only concerned with how they are going to pay the liabilities toward Maran. The court said that it would give one more opportunity to Singh and the company to show their bonafide towards settling their dues and directed that an amount of Rs 100 crore be paid by September 10.
The case relates to Maran’s application for execution of an arbitral award in his favour and against SpiceJet. The validity of the arbitral award was upheld by the single-judge bench of the Delhi High Court on July 31. SpiceJet and Ajay Singh have challenged the same before the division bench, which on Thursday admitted their application but did not stay the single judge’s order.
The developments come after the Supreme Court on July 7 had held that the arbitral award is executable as SpiceJet did not adhere to the timeline it had laid down in February to make certain payments to Maran.
In February, the SC had directed that SpiceJet’s Rs 270 crore bank guarantee be encashed and had asked the airline to pay Rs 75 crore towards interest within three months.