SpiceJet, Ajay Singh move Delhi HC against order backing arbitral award of over ₹200 crore

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Bar and Bench report, the Division Bank of Justices Yashwant Varma and Dharmesh Sharma will hear the case tomorrow (Thursday). Last month, the Delhi High Court upheld the validity of the arbitral award against the low-cost airline. The dispute between Maran and SpiceJet dates back to 2015 when chairman Ajay, who used to own SpiceJet before Maran, bought it back from him.

Maran had transferred his 58.46% stake in the airline to Singh for just ₹2 in 2015. However, as per the deal, Maran was supposed to get redeemable warrants in return for the money invested by him during his tenure as a promoter of the airline. Maran was liable to get 18 crore warrants, which translated to 26% shareholding in SpiceJet.

But Maran did not get his share of the money, neither convertible warrants nor preference shares. Maran then claimed that suffered damages of over ₹1,300 crore. Thereafter, Maran approached the Delhi High Court, which referred the matter to arbitration.

In 2018, an arbitral tribunal ordered SpiceJet to refund ₹270 crore to Maran. Besides, the tribunal also directed Spicejet to pay interest of 12% per annum on the amounts paid towards warrants and to 18% per annum on the sums awarded to Maran if the money transfer is delayed. However, the tribunal found no breach of the share sale and purchase agreement reached between Maran and SpiceJet, and Ajay Singh.

The tribunal rejected Maran's demand for restitution of his shareholding and his claim for damages. Maran, his company KAL Airways, SpiceJet, and Ajay filed petitions before the High Court against the arbitral tribunal's order. On November 2, 2020, the high court asked the airline to deposit around ₹243 crore as interest in connection with the share transfer dispute with its