Did the High Court Deny Maran's Request for Rs 1,300 Crore from SpiceJet?
Click to start listening
Synopsis
The Delhi High Court has made headlines once again as it rejects Kalanithi Maran's appeal for a staggering Rs 1,300 crore in damages from SpiceJet. What does this mean for the airline and its future? Dive into the details of this unfolding legal battle and its implications on the airline industry.
Key Takeaways
- Delhi High Court dismisses Maran's plea for damages.
- SpiceJet shares increased by 2.6% following the ruling.
- The tribunal previously rejected Maran's claims during arbitration.
- Financial turmoil led to the grounding of SpiceJet under Maran’s management.
- No violation of the share agreement was found.
New Delhi, May 26 (NationPress) A Division Bench of the Delhi High Court has dismissed the appeal lodged by KAL Airways and businessman Kalanithi Maran, who were seeking damages exceeding Rs 1,300 crore and other claims from SpiceJet, as confirmed in a regulatory filing by the Ajay Singh-led low-cost airline.
According to the SpiceJet statement, “These claims were previously dismissed by the Arbitral Tribunal and then the Delhi High Court. KAL Airways and Kalanithi Maran initially sought damages of over Rs 1,300 crore during arbitration proceedings, which were meticulously examined and rejected by a panel of three retired Supreme Court judges.”
Subsequently, KAL Airways and Kalanithi Maran appealed to the Single-Judge Bench of the Delhi High Court for the same damages, which the court also denied.
In the morning trade, SpiceJet shares jumped by 2.6 percent, trading at Rs 44.97 each on the BSE.
Ajay Singh had previously sold SpiceJet to Maran and later reacquired the airline in January 2015 after it faced a prolonged grounding due to financial issues. The tribunal determined that Maran owed Singh and the airline Rs 29 crore in penal interest, while Singh was ordered to repay Maran Rs 579 crore with interest.
The tribunal also concluded that there was no breach of the share sale and purchase agreement between Maran and the current promoter Singh from late January 2015.
The tribunal ultimately rejected Maran's claim for damages amounting to Rs 1,323 crore from SpiceJet.
In February 2015, Maran, the promoter of Sun Network and KAL Airways, had transferred their 58.46 percent stake in SpiceJet to Singh for a nominal Rs 2 along with assuming Rs 1,500 crore in debt. The airline was sold back to Singh after facing financial turmoil under Maran’s management, leading to its grounding.
Maran and KAL Airways asserted they had paid SpiceJet Rs 679 crore for the issuance of warrants and preference shares as part of their agreement.
In 2017, Maran approached the Delhi High Court, alleging that SpiceJet had failed to issue convertible warrants and preference shares or return the funds.
Point of View
It is crucial to maintain an unbiased perspective on the ongoing legal disputes in the aviation sector. The dismissal of Kalanithi Maran's appeal against SpiceJet reflects the complexities of corporate governance and financial management in the airline industry. It highlights the need for transparency and accountability, which is essential for restoring public confidence in aviation businesses.
NationPress
08/06/2025
Frequently Asked Questions
What was the reason for the High Court's dismissal of Maran's plea?
The High Court dismissed Maran's plea because the claims had already been rejected by the Arbitral Tribunal and were thoroughly examined by a panel of retired Supreme Court judges.
How did SpiceJet's shares react to the court's decision?
SpiceJet's shares saw a significant increase, rising by 2.6 percent to trade at Rs 44.97 on the BSE.
What financial issues did SpiceJet face under Maran's management?
Under Maran's management, SpiceJet encountered severe financial problems, leading to its grounding and eventual sale back to Ajay Singh.
What was the outcome of the tribunal's ruling regarding the share agreement?
The tribunal ruled that there was no violation of the share sale and purchase agreement made between Maran and Singh in January 2015.
What amount did Maran claim from SpiceJet?
Maran claimed damages amounting to Rs 1,323 crore from SpiceJet, which was ultimately rejected by the tribunal.
