Delhi HC asks SpiceJet to submit its financials in a week
₹393 crore debt to him. During the hearing, senior lawyer Maninder Singh pointed out that SpiceJet hasn't complied with previous court orders and hasn't submitted the required documents. He argued that the airline's deliberate defiance warrants action.
Maninder Singh conveyed that SpiceJet's liability to Maran now stands at ₹393 crore. Maran's lawyer stressed that the court must take significant steps in this case, as SpiceJet is neither providing the necessary documents nor settling the dues. Senior lawyer Sandeep Sethi, representing SpiceJet, mentioned that the high court had granted them time until 5 September to comply.
He pleaded that drastic measures would adversely affect the airline's slim profit margins and its many employees. Despite SpiceJet's arguments, the court issued a notice to the airline, stating that previous orders hadn't been followed. Delhi High Court in its order dated 31 July upheld the arbitration award and had asked low-cost carrier SpiceJet and its owner Ajay Singh to reimburse ₹579 crore plus interest to the airline's former promoter Kalanithi Maran.
In February 2015, Maran transferred his entire shareholding in SpiceJet to Ajay Singh, the current chairman and managing director of the airline, after the carrier nearly went belly up in 2014-15 due to a severe cash crunch. Singh, who paid ₹2 to take over the airline, also took over SpiceJet’s liabilities of ₹1,500 crore. As part of the agreement, Maran and Kal Airways also made payments of ₹679 crore to SpiceJet, under Singh, for issuing warrants and preference shares.
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