Monday, July 03, 2017

Delhi HC Verdict in SpiceJet-Kalanithi Maran Share Transfer Row Today

New Delhi: The Delhi High Court is likely to pronounce on Monday its verdict on the pleas of budget carrier SpiceJet and its co-founder Ajay Singh against a single judge order directing it to deposit Rs 579 crore in connection with a share transfer dispute with previous owner Kalanithi Maran.

The judgement is expected to be delivered by a bench of justices S Ravindra Bhat and Yogesh Khanna. A division bench of the high court had in May reserved its decision on the pleas by the airline and Singh challenging the order which came on a civil suit by Sun Group chief Kalanithi Maran and his Kal Airways.
In their suit, Maran and his airline had sought issuance of stock warrants in SpiceJet to them as per a sale purchase agreement (SPA) of 2015 which led to transfer of ownership of the budget carrier to Singh.

Maran and his airline had alleged before the single judge that despite giving Rs 579 crore to SpiceJet, the carrier had failed to issue them the warrants or allot tranche 1 and 2 of convertible redeemable preference shares and that the amount was not utilised for paying statutory dues due to which they were also facing prosecution.
Apart from ordering deposition of the amount in the court, the single judge had also asked SpiceJet and Maran to appoint an arbitral tribunal to decide the share transfer dispute between them in a year.
03/07/17 PTI/News18