India  

SpiceJet receives order to pay Rs 380 crore to its former promoter

Spicejet flight on airport. Photo Credit: Google
Advertisement

India: SpiceJet has got a order from Delhi High Court to pay rupees 380 crore to its former promoter who is Kalanithi Maran of the Sun Group. This comes amend the battle between Maran family and the current promoter, Ajay Singh, and SpiceJet, over contractual obligations. This order from the High Court is a huge drawback for the low fare airline. Along with this Kumar the High Court has also ordered the airline to submit on affidavit of assets. It has been given a timeline of 28 days, which is four weeks.

The principal amount and the interest

This case dates back from 2017, when Maran had sued SpiceJet over creating losses. The loss was created as the airline failed to issue convertible warrants and preference shares to Maran and his airline KAL Airways. Due to which SpiceJet had to pay him a total principal amount of rupees 579.08 crore during a legal battle between the both. However, only the principle amount was paid and the interest was still remaining. By 2020 October, the interest had become rupees 242 crore and by February 2023, it became rupees 362 crore. Now when the court had held its judgement on 19 May 2023, the total amount had become rupees 380 crores.

Advertisement

SpiceJet spokesperson calls for comprehensive settlement

Meanwhile, SpiceJet spokesperson hinted that they are heading towards a comprehensive settlement as the complete principle amount has already been paid. He said that the airlines is in discussion with Maran as well as KAL Airways. In a statement, he said that they are confident that they will resolve this issue mutually. “We are confident of resolving this issue mutually as we have already paid the complete principal amount earlier awarded by an arbitral tribunal.” he said.

On the other hand, sungroup did not respond anything regarding the topic. SpiceJet had recently in December quarter, earned four times with a total earning of Rupees 106.8 crore. The airline is promoted by Ajay Singh.

Advertisement