In the share dispute case between SpiceJet CMD Ajay Singh and ex-promoter Kalanithi Maran, the Supreme Court on Monday directed the low-cost airline to invoke a bank guarantee of Rs 270 crore to pay Maran towards the dues from the arbitral award of Rs 572 crore.
The apex court also directed SpiceJet to pay Rs 75 crore towards Maran’s claim of Rs 362 crore in interest dues.
The SC direction came after SpiceJet informed the court that it has paid Rs 308 crore in cash against the pending amount of Rs 579 crore and has given a bank guarantee of Rs 270 crore to cover the rest of the amount.
The SC allowed SpiceJet to approach the Delhi High Court to argue for a lower interest.
SpiceJet’s lawyer also told the court that Maran is free to reverse the transaction and take the airline back.
Clarifying the matter, a SpiceJet spokesperson later said: “With regard to the Supreme Court order in the matter relating to the dispute between SpiceJet and its former promoter Kalanithi Maran and his firm KAL Airways, it is clarified that the overall amount in dispute is Rs 578 crore of which Rs 308 crore has already been deposited. The remaining amount of Rs 270 crore is reserved with the company in cash against which a bank guarantee has been given. This amount of Rs 270 crore will be comfortably discharged as per the direction of the Supreme Court. Further, the additional amount of Rs 75 crore will be paid within a period of three months as per the directions of the SC. We hope this is a step towards achieving a final settlement in this matter.”
Last year in August, the Marans had offered to settle the dispute through mediation, a proposal that SpiceJet accepted. However, after weeks of discussions, a mediation a settlement could not be reached.
The dispute dates back to 2015 when Maran and his firm KAL Airways transferred 58.46% of the shares held by them to the present chairman of SpiceJet, Ajay Singh, for ` 2. Singh, who was the co-founder of the airline, had taken on the airline’s liabilities valuing at `1,500 crore.
Through this share-transfer agreement, Maran was to be issued warrants and preference shares and had paid `679 crore towards the same.
In 2017, Maran moved the Delhi High Court saying that he was neither issued the preference shares as agreed upon nor was the money paid by him refunded. The High Court referred the case for arbitration.
The arbitration tribunal, in July 2018, awarded a refund to Maran to the tune of Rs 579 crore-plus interest, but rejected his claim for Rs 1,323 crore in damages. When Maran challenged this arbitration award before the High Court, the court favoured Maran and directed SpiceJet to deposit Rs 243 crore towards the interest amount.
This order of the High Court was stayed by the Supreme Court and came up for hearing on Monday with Maran seeking vacation of the stay order.