“….There is no question of an amicable settlement with SpiceJet Ltd in view of the matter having reached finality by virtue of the order dated July 7, 2023, of the Honorable Supreme Court of India,” a statement from Marans Group firm KAL Airways said. 

The Maran Group issued the clarification on reports of amicable settlement between the Marans and SpiceJet, following the Supreme Court order dated 7 July. The apex court directed budget airline SpiceJet to pay the entire arbitral amount of ₹380 crore to former promoter Kalanithi Maran in their legal dispute, a development which may impact the debt-laden carrier further. 

A bench presided over by Chief Justice D Y Chandrachud and comprising Justice P S Narasimha dismissed SpiceJet’s plea seeking additional time to pay the ₹75 crore to Maran and KAL Airways, as directed by the apex court on 13 February. Besides, the bench said that a clear message should be sent to ensure the court’s orders are followed, especially in commercial matters. 

“We hope that SpiceJet Ltd will comply with the orders of the Honorable Supreme Court of India and pay us the interest amount of ₹386 crore forthwith,” Kal Airways added. 

Meanwhile, SpiceJet said that the concerned payment is only “a security deposit” amount arising from execution proceedings. 

“The final amount to be paid by either side will be determined by the Hon’ble High Court of Delhi in the proceeding pending under Section 34 of the Arbitration Act,” SpiceJet said, adding that the orders in this petition have been reserved on 18 April and are awaited. 

The Gurugram-based airline further reiterated that it had approached the Supreme Court seeking an extension for payment of ₹75 crore but the matter was listed for 7 July. 

“In the larger interest, we remain committed to finding an amicable settlement in this matter,” the airline added. 

In February 2015, Maran had transferred his entire shareholding in SpiceJet to Ajay Singh, the current chairman and managing director of the airline, after the carrier nearly went belly up in 2014-15 due to a severe cash crunch. 

Singh, who paid ₹2 to take over the airline, also took over SpiceJet’s liabilities of ₹1,500 crore. As part of the agreement, Maran and Kal Airways also made payments of ₹679 crore to SpiceJet, under Singh, for issuing warrants and preference shares. However, Maran approached the Delhi high court in 2017, alleging SpiceJet had not issued convertible warrants and preference shares or returned the money. 
 

Meanwhile, the board of low-cost carrier SpiceJet will meet on 12 July to consider raising funds, the airline informed the stock exchanges. 

The board will consider options for raising fresh capital through either the issue of equity shares or convertible securities on a preferential basis or both during the board meet on 12 July. The airline is yet to announce earnings for the March quarter and for 2022-2023 (Apr-Mar).  

Updated: 10 Jul 2023, 07:17 PM IST