New Delhi [India]: The Division Bench of Delhi High Court on Thursday refused to stay the Single bench Justice order upholding the arbitral tribunal’s order directing SpiceJet and its Chairman and Managing Director (CMD) Ajay Singh to refund over ₹270 crore to Sun Group promoter Kalanithi Maran and Kal Airways.
Meanwhile, the Division bench issued notice on the appeal moved to challenge the single bench order.
The bench of Justice Yashwant Varma and Justice Dharmesh Sharma issued notice to the Sun Group promoter Kalanithi Maran and Kal Airways on appeal while refusing to stay on the order passed by Single Judge Bench of Justice Chander Dhari Singh on July 31, 2023.
SpiceJet and its Chairman and Managing Director (CMD) Ajay Singh have filed an appeal before the Division bench of Delhi High Court challenging a single judge’s order directing them to refund over Rs 270 crore to Sun Group promoter Kalanithi Maran and Kal Airways.
In the execution matter before Justice Yogesh Khanna Senior Advocate Maninder Singh appearing for Kal Airways and Kalanithi Maran submitted that the no stay has been granted by the Appellate Court in the appeal filed by Spicejet and Ajay Singh.
Noting the submission, the Court in consultation and with the consent of SpiceJet directed the Company to pay Rs 100 Crore by September 10, 2023.
“SpiceJet will honour the Delhi High Court’s order and make the specified payment within the prescribed timeframe. We are committed to presenting our matter diligently and respectfully, seeking a just and fair resolution,” stated the Spokesperson in a statement issued the the hearing.
A bench presided over by Justice Chandra Dhari Singh on July 31, while pronouncing the judgement in the section 34 petition moved by the parties, affirmed the Arbitral Award dated 20.07.2018 passed by an Arbitral Tribunal comprising three retired Supreme Court Judges in favour of Kal Airways and Kalanithi Maran.
The Arbitral Award directed that Decree Holders – Kal Airways and Kalanithi Maran are entitled to a refund of Rs 308 crores towards the Warrants and a refund of the amount of Rs.270 Crores towards Cumulative Redeemable Preference Shares (CRPS).
Furthermore, Kal Airways and Kalanithi Maran were also awarded an interest of 12 per cent towards Pendente lite and an interest of 18 per cent from the last date of the due date in terms of the Arbitral Award in case the payments, as directed, to be made by Spicejet and Ajay Singh is not made within two months from the date of award.
Spicejet and Ajay Singh had filed section 34 petitions to challenge and set aside the Arbitral Award to the extent that the award directed the refund of Rs.270 Crores to Kal Airways and Kalanithi Maran.
Spicejet and Ajay Singh had further sought to set aside the award seeking a waiver of 12 per cent interest towards warrants as well as setting aside the interest of 18 per cent granted under the award on both warrants and CRPS.
Kal Airways and Kalanithi Maran also filed Section 34 Petition seeking setting aside of award to the extent no interest was granted on the amount of Rs 270 Crores, as well as damages for non-issuance of Warrants and CRPS.
Maninder Singh, Senior Advocate instructed by Nandini Gore, Senior Partner, Sonia Nigam, Principal Associate and Yash Dubey, Associate and Akarsh Sharma, Associate Advocate from Karanjawala and Company appeared on behalf of Kal Airways Private Limited and Kalanithi Maran.
Amit Sibbal, Senior Advocate appeared on behalf of Spicejet Limited and its CMD Ajay Singh.
