Submit Financials In One Week, Delhi Hc Tells Spicejet
Date
8/10/2023 9:54:49 AM
(MENAFN- Live Mint) "New Delhi: The Delhi high court has issued SpiceJet a notice directing it to submit its accounts statement and asset-liability affidavit within a week. The court has also summoned the airline's chairman and managing director Ajay Singh, to appear in person on 24 August for the hearing.The court's action comes on a plea filed by Kalanithi Maran, the chairman of Sun group and former promoter of SpiceJet, seeking the attachment of 50% of SpiceJet's weekly cash revenue to settle the airline's ₹393 crore debt owed to him.During the hearing, Maran's counsel Maninder Singh called for action against SpiceJet for intentional non-compliance with previous court orders, and its failure to provide necessary documents.SpiceJet's counsel Sandeep Sethi, in turn, pleaded against any severe measure, citing the extension till 5 September that the court had granted to comply with its orders and pointed out that such action would negatively impact SpiceJet's narrow profit margins and its workforce. The court, however, issued notice to SpiceJet after hearing the arguments.On 31 July, the Delhi high court had upheld the arbitration award, asking the carrier and Singh to reimburse ₹579 crore with interest to Maran.In February 2015, Maran, then SpiceJet's promoter, had transferred his entire shareholding in the airline to Singh after the carrier went belly up. Under this takeover pact, Maran and his Kal Airways had paid ₹679 crore to the airline, under Singh, for issuing warrants and preference shares.But in 2017, Maran moved the Delhi high court, alleging that SpiceJet had neither issued the convertible warrants and preference shares, nor did it return the money.In July 2018, an arbitration panel rejected Maran's claim of damages of ₹1,323 crore, but awarded a refund of ₹579 crore with interest. In 2020, Delhi high court ordered SpiceJet to deposit ₹243 crore towards interest payment. On 13 February, the apex court directed the immediate encashment of SpiceJet's bank guarantee worth ₹270 crore for clearing the dues to Maran and Kal Airways. The court also ordered SpiceJet to pay ₹75 crore to Maran and Kal Airways within three months as interest. On 7 July, the SC denied any further extension to SpiceJet.
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