Delhi High Court summons SpiceJet’s Ajay Singh in case against Kalanithi Maran
₹440 crore in interest from the arbitral award, while SpiceJet claims it has already paid ₹100 crore following a court directive in August and owes an additional ₹194 crore. SpiceJet also anticipates a reimbursement of ₹400 crore from Maran if its arbitration challenge is successful. During previous proceedings, SpiceJet highlighted its financial challenges, citing operational losses, a negative net worth, and employee-related obligations that could lead to insolvency.
The airline attributed its financial difficulties to various factors, including the grounding of Boeing 737 Max aircraft, the pandemic, and higher fuel costs owing to the Ukraine conflict. The airline had asked the court to withhold judgement until a division bench of the the high court ruled on its challenge to the arbitral award. The dispute dates back to 2015, when Maran and KAL Airways sold their entire stake in SpiceJet to Ajay Singh amid financial difficulties.
Singh, who acquired the stake for a nominal ₹2, also took on the airline's ₹1,500 crore of debt. In return, Maran paid ₹679 crore to SpiceJet for share warrants and preference shares that were never issued. SpiceJet is mired in several legal battles with creditors over outstanding dues.
Recently, Alterna Aircraft BV Limited, an aircraft lessor based in Ireland, filed an insolvency plea with the National Company Law Tribunal, seeking the recovery of $11.1 million and £265,000 awarded by English courts. On December 19 the Delhi High Court directed SpiceJet to pay $450,000 by January 3 to engine lessors EAM France 01 SAS and Sunbird France 02 SAS, which claimed they hadn't been paid $12.9 million for more than two years. The court also considered restraining the airline from using three engines
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