Tuesday, July 11, 2017

Former promoter Kalanithi Maran seeks over Rs 2,000 crore compensation from SpiceJet

New Delhi: SpiceJet's former promoter, Kalanithi Maran of Sun Group, has sought over Rs 2,000 crore compensation from current promoter Ajay Singh and the airline for allegedly causing losses by failing to honour contractual obligations. SpiceJet told ET "the question of damages does not arise".

The claim for compensation has been filed before an arbitral tribunal comprising retired Supreme Court judges Arijit Pasayat, Hemant Laxman Gokhale and KSP Radhakrishnan. The tribunal was created in end 2016 under orders of the Delhi High Court and is adjudicating on a share transfer dispute between Maran and Singh. Hearings before the tribunal are ongoing and are expected to conclude in two months.
Maran's Rs 2,000-plus crore compensation claim, people close to him said, is based on losses incurred because of SpiceJet's alleged failure to issue convertible warrants and preference shares to him and his KAL Airways. They said if compensation was not forthcoming, Maran will seek restoration of the status quo ante on SpiceJet's ownership.
A SpiceJet spokesman, responding to ET's questions, said: "We can't comment on the specifics due to the ongoing arbitration... (but) the question of damages does not arise". "The entire issue was subject to approval of regulatory bodies... this permission was also denied when the previous promoter was in control and had applied for the same permission," he said.
11/07/17 Binoy Prabhakar/Ecopnomic Times
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