Media baron Kalanithi Maran-promoted Kal Airways on Monday denied being in talks with Spicejet for an amicable settlement in the pending dues case. It stated that it hopes Spicejet will comply with the order of Supreme Court and pay the former the interest amount of Rs 386 crore.
“It has come to our knowledge that a statement purportedly issued by the spokesperson of Spicejet has been circulating among certain sections of media that Spicejet is in talks with Kalanithi Maran and Kal Airways for an amicable settlement. We deny the same and state that there is no question of an amicable settlement with Spicejet in view of the matter having reached finality by virtue of the order dated July 7, 2023 of the Supreme Court.
“We hope that Spicejet will comply with the orders of Supreme Court and pay us the interest amount of Rs 386 crore forthwith,” Kal Airways said in statement signed by SL Narayanan, group CFO, Sun Group.
Spicejet had reportedly expressed confidence on Saturday that the issues could be resolved through negotiations. According to media reports, which quoted an airline official, Spicejet said the payment of Rs 380 crore as directed to be paid by the Supreme Court “is only a security deposit amount arising from execution proceedings.” The official further stated that Spicejet is actively engaged in discussions with Maran and Kal Airways to reach a full and final settlement regarding the interest amount.
The Supreme Court, had on July 7, declined to grant an extension to Spicejet to fulfil its payment obligations to Maran, as directed by the court in February. The apex court ordered the airline to pay the entire arbitration award of Rs 380 crore to the airline’s former promoter Maran in the share transfer dispute.
The SC also dismissed pleas filed by Spicejet seeking an extension to pay Rs 75 crore to Kal Airways and Maran, and observed that filing applications to seek extension is a delay tactic.
Previously, the Delhi high court in June asked Spicejet to pay Rs 380 crore to Maran. Prior to that, on February 13, the SC directed Spicejet to pay Rs 75 crore against Maran’s claim of Rs 362.49 crore in interest dues within three months under the 2018 arbitration award.
In February 2015, Maran had transferred his entire shareholding in SpiceJet to Ajay Singh, the current chairman and managing director of the airline. In 2017, Maran and KAL Airways moved the Delhi high court demanding that 180 million warrants redeemable as equity shares be transferred to them. Subsequently, Spicejet and its promoter Ajay Singh have been asked to deposit around Rs 243 crore as interest payable on Rs 578 crore, which the high court in 2017 had asked the airline to deposit under the 2018 arbitration award in the share-transfer dispute.