Mumbai/Delhi: An arbitration tribunal has ruled in SpiceJet's favour, in a share purchase dispute with ex-promoter Kalanithi Maran. And, has rejected the latter’s Rs 13-billion claim for loss on account of non-issuance of share warrants.
The tribunal has, however, held that Maran will be entitled to a refund of Rs 5.79 billion, the subscription amount he made for warrants and preference shares. Even so, this will not result in a new liability for the airline, since it has already deposited the amount with the high court in Delhi, said a source close to the airline.
Maran sold his 58.46 per cent stake in SpiceJet to Ajay Singh, its current chairman, for a nominal Rs 2 in 2015, after a financial crunch crippled its operation. The two sides have been locked in litigation since. Maran has accused SpiceJet of breach of agreement, for not issuing him 189 million share warrants and preference shares, despite his Rs 6.79 billion infusion.
The warrants, if converted into equity, would have given Maran and his Kal Airways a 24 per cent stake in the airline. SpiceJet contended these could not be issued as it did not ge the BSE exchange’s approval.
21/07/18 Aneesh Phadnis & Arindam Majumder/Business Standard
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The tribunal has, however, held that Maran will be entitled to a refund of Rs 5.79 billion, the subscription amount he made for warrants and preference shares. Even so, this will not result in a new liability for the airline, since it has already deposited the amount with the high court in Delhi, said a source close to the airline.
Maran sold his 58.46 per cent stake in SpiceJet to Ajay Singh, its current chairman, for a nominal Rs 2 in 2015, after a financial crunch crippled its operation. The two sides have been locked in litigation since. Maran has accused SpiceJet of breach of agreement, for not issuing him 189 million share warrants and preference shares, despite his Rs 6.79 billion infusion.
The warrants, if converted into equity, would have given Maran and his Kal Airways a 24 per cent stake in the airline. SpiceJet contended these could not be issued as it did not ge the BSE exchange’s approval.
21/07/18 Aneesh Phadnis & Arindam Majumder/Business Standard
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