Delhi HC upholds ₹579 cr arbitration award for Marans
₹579 crore along with accrued interest to the airline’s former promoter Kalanithi Maran. The bench presided over by Justice Chandra Dhari Singh also rejected the airline’s plea for interest waiver on the arbitral award, besides dismissing Singh’s challenge against the award in favour of the Marans. The dispute pertains to the transfer of Maran and KAL Airways’ entire 58.46% stake in the airline to Singh in February 2015.
In 2018, an arbitral tribunal also ruled in favour of Maran, awarding ₹579 crore plus interest. The high court’s decision on Monday has paved the way for the enforcement of the award. However, execution proceedings against the award are pending before another bench of the high court.
The hearing is scheduled for 5 September. In an earlier order the HC had ordered Singh, Spicejet’s chairman and managing director, to appear in person on 5 September, and directed the airline to file an affidavit, disclosing all its assets related to the applications filed by Kal Airways seeking payment. The dispute started when Maran did not receive warrants following the ownership transfer to Singh for a nominal sum of ₹2.
In 2016, Maran took the matter to the Delhi High Court, seeking issuance of the convertible warrants. The HC intervened, restraining Singh from transferring or issuing SpiceJet shares and instructed the parties to convene an arbitral tribunal. Additionally, SpiceJet was directed to deposit ₹579 crore.
In 2018, Maran challenged the arbitral award before the high court, extending the legal battle. In 2020, the high court ordered SpiceJet to deposit ₹243 crore as interest payment. Maran further sought the court’s assistance to attach Singh’s shares for non-compliance with the payment On 13 February, the
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