KAL Airways, Maran To Challenge Court Order And Seek Damages Worth Rs 1,323 Crore From SpiceJet, Ajay Singh

Recently, a division bench of the court did away with the order from a single judge bench, passed in July, 2023 that upheld the arbitral award, to be paid by SpiceJet and Singh to Maran

The carrier and Maran informed that they will challenge the latest order by the Delhi High Court regarding the current dispute between both sides ( Image Source :Getty )

KAL Airways and Kalanithi Maran announced on Monday that they will be seeking damages worth over Rs 1,323 crore from SpiceJet and its CEO, Ajay Singh. The carrier and Maran also informed that they will challenge the latest order by the Delhi High Court regarding the current dispute between both sides.

Earlier this month on May 17, a division bench of the court did away with the order from a single judge bench, passed on July 31, 2023, that upheld the arbitral award urging SpiceJet and Singh to issue a refund of Rs 579 crore plus interest to Maran, reported PTI.

The bench accepted the appeals filed by Singh and the troubled carrier against the single judge’s order and remanded the issue back to the court concerned to look into the pleas challenging the arbitral award once again. Now, Maran and his company, KAL Airways, have opted to challenge the ruling.

KAL Airways issued a statement on Monday and said, “The decree holders -- KAL Airways and Maran -- believe that the aforesaid judgement is deeply flawed and warrants further scrutiny. In parallel, they are also seeking damages in excess of Rs 1,323 crore, as determined by FTI Consulting LLP, United Kingdom, a globally renowned firm that specialises in estimation of losses arising out of breach of contractual commitments.”

The statement revealed that Maran and his firm will seek the execution of the arbitral award, resulting in a refund of the pending dues worth Rs 353.50 crore. The airline noted that its claim for damages always ‘remained an integral part of their quest for justice’.

“By pursuing both the challenge to the Delhi High Court judgement and the claim for damages, the decree holders hope to secure a just and equitable resolution to the contentious dispute,” the statement read.