Delhi HC defers hearing in SpiceJet-Maran case to 9 Oct
₹100 crore to Maran out of the total due amount of ₹397 crore. According to thehigh court's 24 August order, the airline was instructed to pay ₹100 crore to Maran by 10 September. In the arbitration award execution case, Maran had claimed SpiceJet had forfeited its right to be heard in court by willfully disobeying orders.
They requested the court to seize the entire profit of ₹204 crore from SpiceJet, along with future profits if the debt is not paid. In response, SpiceJet argued that demanding immediate payment could push the airline into insolvency, which wouldn't benefit the Marans, as they would become operational creditors. SpiceJet also said its financial difficulties arose from various factors, including the purchase of Boeing 737 Max aircraft disallowed for flights by regulators, losses due to the covid-19 pandemic, and increased fuel prices due to the Ukraine conflict.
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.
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