New Delhi: The Supreme Court on Friday quashed the petition filed by SpiceJet Limited and its chairman Ajay Singh challenging the Delhi High Court’s order to deposit funds. $144.5 crore in arbitration dispute with Kalanithi Maran and KAL Airways Pvt Ltd.
A bench of Justices PS Narasimha and Alok Aradhe upheld the Supreme Court’s January 19 order and also imposed costs $1 lakh on Ajay Singh to pursue the suit indefinitely.
Responding to the order, SpiceJet said it has taken note of the matter and the company is examining the matter and will comply with all directions of the court.
“SpiceJet would like to assure all stakeholders that this development has no impact on its day-to-day operations. The matter arises from a share transfer agreement involving SpiceJet, its promoter Ajay Singh, KAL Airlines and Kalanithi Maran.
“SpiceJet has paid a total of $730 crore to Kalanithi Maran and KAL Airways, including the entire principal amount $580 Crores $Rs 150 crore towards interest. A statement issued by the company said that the remaining amount, as directed by the court, will be deposited in the court in accordance with the arbitration process.
The dispute stems from a 2015 share transfer agreement where Kalanithi Maran and KAL Airlines transferred their 58.46 per cent stake in SpiceJet to Ajay Singh under a share purchase and sale agreement.
In January, the Supreme Court also observed that the Supreme Court’s Payment and Compliance Directives 2023 had not been fully followed.
The Supreme Court noted that SpiceJet admitted this $Rs 194.51 crore is payable as per the directions issued by the Supreme Court.
After accounting $50 Crores have already been deposited, which is a balance of $Rs 144.51 crore remains unpaid.
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