SpiceJet Pays Rs 100 Crore To Kalanithi Maran Towards Arbitral Award

The court last month had asked SpiceJet to pay Rs 100 crore to Maran by September 10. The order stated that the court might consider attaching the airline's properties if it fails to make the payment

The Supreme Court on Monday asked SpiceJet to pay $1.5 million to Credit Suisse and warned of a "drastic action" if it fails.

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SpiceJet on Tuesday paid Rs 100 crore out of an order of Rs 380 crore for an arbitral award to Kal Airways and its promoter Kalanithi Maran. The Delhi High Court on Monday asked the airline to complete the payment. The airline in a statement said, "SpiceJet Ltd. has made a payment of Rs 77.5 crore to Kal Airways Private Limited and will complete the payment of Rs 100 crore today by paying Rs 22.5 crore as per the directions of the Hon’ble Delhi High Court.”

The court last month had asked SpiceJet to pay Rs 100 crore to Maran by September 10. The verdict stated that the court might consider attaching the airline's properties if it fails to make the payment.

According to SpiceJet’s statement, "SpiceJet acknowledges the legal process and is committed to complying with all court directives and obligations in the Credit Suisse matter and will pay $1.5 million as per the court directive. To date, SpiceJet has already paid $8 million to Credit Suisse as per consent terms.”

The Supreme Court on Monday asked the airline to pay $1.5 million to Credit Suisse and warned of a "drastic action" if it fails. Senior advocate Maninder Singh, appearing for Maran, had said that Ajay Singh and his airline now owe them close to Rs 397 crore. He said that in accordance with the court’s orders, Singh and SpiceJet had filed an affidavit of the assets and liabilities. However, it was not in the format prescribed by law and in a sealed cover.

The Delhi High Court in August refused to stay a single judge order upholding an arbitral award asking SpiceJet and its promoter Ajay Singh to refund Rs 579 crore plus interest to media baron Kalanithi Maran. The HC, on July 31, refused to set aside the arbitral award in favour of Maran and against SpiceJet, making way for Maran to press for enforcement of the award.

Ajay Singh had on May 11 said that there was no question of filing for insolvency. “There is absolutely no question of filing for insolvency. We are focused firmly on reviving our grounded fleet,” he said.

Singh had sought to set aside the portion of the award, which directed SpiceJet to refund Rs 270 crore to Kal Airways and Kalanithi Maran