The Supreme Court on Thursday asked Kalanithi Maran and his company KAL Airways to consider the Rs 600-crore full and final settlement offer by SpiceJet to end all the pending disputes including the share transfer one.

SpiceJet senior counsel Mukul Rohatgi told a bench led by Chief Justice N V Ramana that the airline was ready to pay another Rs 300 crore to its former promoter if they are ready to settle the ongoing case once for all and bring end to the litigation. He said that the amount can be made available within a month if Maran agreed to the offer.

Ajay Singh and his airline said that out of the principal amount of Rs 579 crore, Rs 308 crore had been paid in cash and balance Rs 270 crore have been secured through bank guarantee. The airline will convert its bank guarantee to cash and pay out an additional Rs 22 crore to Maran, Rohatgi said, adding that if Maran gives up ‘unjustified’ 18% interest, SpiceJet will be willing to pay the amount and close the case.

Pursuant to the sttlement offer, the CJI asked senior counsel Maninder Singh, appearing for Maran and KAL Airways, to talk to his clients and respond to the proposal in two weeks by Monday, the next date of hearing.

Thursday’s offer of additional Rs 300 crore by SpiceJet is over and above Rs 308 crore that has been already paid pursuant to the Delhi high court’s order that asked SpiceJet to give Rs 579 crore to Maran and KAL Airways as an interim relief in the share transfer dispute. The HC had also asked the low-cost airline to deposit Rs 243 crore towards interest on the amount of Rs 579 crore, which was stayed by the SC in November 2020.

Singh, while seeking vacation of stay of the SC’s order of Novemeber 6, 2020 ,asked the SC to secure the decree amount on the grounds that SpiceJet was under heavy debts and will have no funds/assets to make payments in view of winding up order passed by the Madras high court.

He said that the debt-ridden airline was planning to raise fresh capital to the tune of Rs 2,500 crore through issue of securities (IPO route) to qualified institutional buyers in order to give boost to its working capital which has substantially eroded and the board of directors are soon to decide on the mode of funding.