Monday, September 11, 2023

SpiceJet says it has paid Rs 100 cr to Kal Airways after Delhi HC order

SpiceJet on Tuesday said it has "completed the payment of Rs 100 crore" to former promoter Kalanithi Maran, chairman and founder of the Sun TV Network, as per the directions of the Delhi High Court.

In a statement, the airline noted that it has completed the payment to Kal Airways. It paid Rs 77.5 crore to Maran on September 11, and the rest of Rs 22.5 crore on Tuesday.

"SpiceJet has completed the payment of INR 100 crore to Kal Airways Private Limited. While a payment of Rs 77.5 crore had been made to Kal Airways till September 11, the remaining Rs 22.5 Crore was paid today," the company said in a statement.

Earlier on August 24, the Delhi High Court had asked Ajay Singh, the chairman and managing director (CMD) of SpiceJet, to pay Rs 100 crore to Maran by September 12.

It had also warned SpiceJet of attachment of assets, in case the airline fails to pay Rs 100 crore to Kalanithi Maran of KAL Airways by September 10.

The next hearing of the case is now scheduled for October 3.

The shares of SpiceJet were down by 4.90 per cent to Rs. 38.04 at 3.05 am on the BSE.

In February 2015, Maran and KAL Airways transferred their 58.46 per cent in SpiceJet to Singh, who took on the airline’s liabilities of around Rs 1,500 crore.

According to Maran, as per the agreement between him and Singh, they paid SpiceJet Rs 679 crore for issuing warrants and preference shares. Maran later alleged that the warrants and preference shares were not allotted to him and initiated arbitration proceedings against SpiceJet and Singh.

In July 2018, an arbitration panel rejected Maran’s claim of damages of Rs 1,323 crore for not issuing warrants to him and KAL Airways. But it awarded him a refund of Rs 579 crore plus interest.

SpiceJet was permitted to furnish a bank guarantee for Rs 329 crore and make a cash deposit of the remaining sum of Rs 250 crore.

Maran said SpiceJet owed him Rs 393 crore as of August 3 and sought attachment of 50 per cent of SpiceJet's daily revenues towards paying the dues.

12/09/2023 Business Today

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