SC Dismisses Spicejet's Plea Seeking Extension To Pay Dues To Maran, Kal Airways
While refusing to extend the time, the Delhi HC had on June 1 directed SpiceJet to deposit "forthwith" Rs 75 crore that has to be paid to Maran and Kal Airways towards interest on the arbitral award
The Supreme Court (SC) on Friday dismissed the applications filed by Spicejet seeking an extension to pay Rs 75 crore to Kal Airways and Kalanithi Maran, reported by PTI. While refusing to extend the time, the Delhi High Court had on June 1 directed SpiceJet to deposit "forthwith" Rs 75 crore that has to be paid to Maran and his Kal Airways towards interest on the arbitral award, according to the report.
Earlier, the top court had ordered that the bank guarantee of Rs 270 crore furnished by SpiceJet to Maran and his firm must be encashed immediately if the airlines failed to pay Rs 75 crore towards interest on the arbitral award by May 13.
A bench of Chief Justice D Y Chandrachud and Justice P S Narasimha on Friday did not accept the vehement submissions of senior advocate Mukul Rohatgi, appearing for SpiceJet, and refused to the extend the time, saying the entire award has now become executable. "The battery of lawyers is involved in all this and you know, the idea is just to delay complying with the orders of the court. I personally will not approve this... The writ of the court has to be complied with and now, they (the Delhi High Court) will execute the award," the CJI said.
Senior advocate Maninder Singh, appearing for Maran and his Kal Airways, said that nothing has been paid after the SC asked them to pay Rs 75 crore as interest and no indulgence be granted to them in the form of extension of time. Singh, appearing through Karanjawala and Company, said SpiceJet has earlier also failed to comply with the order of the high court directing it to file an affidavit disclosing assets.
"Rs 75 crore is not a small amount," the lawyer of SpiceJet said. "But then these are not small parties either... These are all luxurious litigations. No further extension of time can be granted and the award becomes executable," it said.
On November 2, 2020, the high court had asked the airline to deposit around Rs 243 crore as interest in connection with the share transfer dispute with its former promoter, Maran, and Kal Airways. On November 7, 2020, the SC stayed the high court order.
On February 13 this year, the apex court said the bank guarantee of Rs 270 crore of SpiceJet must be encashed immediately and the money be paid to Maran and Kal Airways towards dues from the arbitral award. It said it had directed SpiceJet to pay within three months Rs 75 crore to Maran and Kal Airways towards the interest component on the arbitral award. However, on May 29, the high court was informed that SpiceJet has not paid the interest amount.
SpiceJet and its promoter Ajay Singh were asked to deposit around Rs 243 crore as interest payable on Rs 578 crore, which the high court had, in 2017, asked the airline to deposit under the 2018 arbitration award in the share-transfer dispute.
The high court had granted six weeks to SpiceJet to make the payment and the deadline for the same expired on October 14, 2020. After this, Maran and his firm had moved the high court for attachment of the entire shareholding of Singh in Spicejet and taking over the management for non-payment of Rs 243 crore. The top court had taken note of Spicejet's appeal and passed the interim order, staying the high court order.
Maran and Kal Airways had moved high court over the share-transfer dispute, with SpiceJet demanding that 18 crore warrants redeemable as equity shares be transferred to them.
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