Delhi HC asks SpiceJet to pay ₹100 cr to Kalanithi Maran by Sept 10
SpiceJet and its CMD Ajay Singh to pay former promoter Kalanithi Maran ₹100 crore by September 10 «as bonafide subject to their rights and contention» or else the airline's assets will be attached.
Justice Yogesh Khanna questioned Singh, who was present in the court, about his payment plans and also warned him that the company's profits would be attached otherwise in the seven-year-old share transfer dispute. An application for Singh's arrest could also be filed, it said, while posting the matter for further hearing on September 11.
The HC rejected SpiceJet's offer to deposit ₹75 crore within 10 days despite its senior counsel Amit Sibal arguing that the airline was «struggling to stay afloat» and if the company went into insolvency, it will not help anyone.
Justice Khanna, however, said that the court was only concerned with how they will pay their liabilities to Maran.
Senior counsel Maninder Singh, appearing for Maran, demanded attachment of SpiceJet's profit of ₹ 204 crore in the quarter ending June 30 towards payment of its liabilities.
SpiceJet said in a statement it would honour the court order and «make the specified payment within the prescribed timeframe.»
Meanwhile, the HC division bench led by Justice Yashwant Varma refused to stay the 2018 arbitral award and grant waiver of interest, as sought by SpiceJet.
However, it sought a response from Maran. The HC had on July 31 refused to interfere with the July 20, 2018, arbitral tribunal award that asked SpiceJet to refund ₹579 crore with interest to the former promoter.
It had also rejected SpiceJet's objections to the levy of interest at 12% per annum on the amount to be refunded towards warrants and 18% per annum in case of non-payment within the stipulated time
