Tuesday, August 29, 2023

Kalanithi Maran files caveat against SpiceJet in Supreme Court

Sun Group chairman Kalanithi Maran has filed a caveat in Supreme Court in anticipation of an appeal by SpiceJet against Delhi High Court's order refusing to stay the operation of the arbitral award in his favour.

A caveat is a pleading filed by a party to a litigation in the lower court, informing the court that the opposing party, who has not succeeded in the lower court may file a case against them. The court is to hear both the sides before passing any order in case a caveat is filed.

On August 24, a division bench of the Delhi High Court dismissed SpiceJet's plea seeking a stay on the arbitral award. SpiceJet’s lawyers submitted before the court that they would pay Rs 75 crore immediately and that the airline employs 10,000 people but the bench denied any relief.

On the same day, an execution court of the Delhi High Court ordered SpiceJet and its Chairman cum Managing Director (CMD) Ajay Singh  to pay Rs 100 crore to Maran by September 10 as bona fide subject to their rights and contention. The failure to do so could also lead to the court attaching the company's profits for the last quarter, the court orally warned.

Maran has filed a caveat since this order of the high court is appealable in Supreme Court. It may also be noted that as per law, if the operation of an arbitral award is stayed, the execution court cannot compel the SpiceJet to make payments to Maran.

Maran's caveat was filed on August 26 by his lawyers Karanjawala and co.

29/08/2023 SN Thyagarajan/Moneycontrol

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