SpiceJet seeks damages from Maran
₹100 crore loan taken from City Union Bank in 2012 when the airline was under Maran’s control, but the payment was never made, resulting in losses. SpiceJet repaid the loan completely in June this year. It also sought to overturn a single bench order in July that upheld the validity of an 2018 arbitration award in favour of the Marans.
SpiceJet also informed the court that it is “struggling to stay in the air" and facing financial losses. In July, the Delhi high court upheld a July 2018 arbitration order awarding Maran and Kal Airways a refund of ₹579 crore plus interest. According to SpiceJet, Maran’s failure to settle the ₹100 crore loan incurred a loss of ₹23.77 crore, which escalated to ₹29 crore by the time the arbitral award was rendered.
Maran’s side argued that the case should be deferred until the single bench decided on the execution of the arbitral award. The single bench is hearing the execution of the arbitral award and is yet to decide on the payment schedule by the airline to Maran. Marans reiterated that current promoter Ajay Singh and SpiceJet owe ₹579 crore and have only paid ₹100 crore after the order.
In September, SpiceJet paid ₹100 crore to Maran as per the order, instructing the payment be made by 10 September. In earlier proceedings, Maran had claimed SpiceJet had forfeited its right to be heard in court by wilfully disobeying orders. They requested the court to seize the entire profit of ₹204 crore that SpiceJet made during the first quarter of the current fiscal, along with future profits if the debt is not paid.
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