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In response to the Delhi High Court's ruling on May 17, SpiceJet will want a refund of Rs 450 crore from the Rs 730 crore it had previously paid to erstwhile promoter Kalanithi Maran and his company, KAL Airways.
In response to the Delhi High Court’s ruling on May 17, SpiceJet will want a refund of Rs 450 crore from the Rs 730 crore it had previously paid to erstwhile promoter Kalanithi Maran and his company, KAL Airways. In the protracted share transfer dispute involving SpiceJet and its promoter, Ajay Singh, and erstwhile promoter Kalanithi Maran and his company, KAL Airways, the Delhi High Court Division Bench rendered a decision on May 17 in favor of SpiceJet and Singh. With this result, a single-judge bench’s earlier ruling is overturned, allowing SpiceJet to seek a sizable reimbursement based on legal counsel.
Ajay Singh and SpiceJet filed an appeal, raising a number of serious concerns about the decision to grant a refund and the basis for charging interest in the case. The Division Bench noted that these challenges had a lot of merit and that the prior order dated July 31, 2023, did not fully address them. The airline said, “The Division Bench held that the Single Judge had erred in dismissing the Section 34 petitions of Ajay Singh and SpiceJet without giving due consideration to the claims of patent illegality and the order of refund passed against SpiceJet despite admitted breaches on the part of KAL Airways and Kalanithi Maran.” Additionally, the Court has highlighted that even though SpiceJet did not violate any terms of the Share Purchase Agreement, interest in the amount of punitive interest had been levied. Since the sole judge did not take these factors into account, Ajay Singh and SpiceJet’s appeals were granted, and the contested July 31, 2023, ruling was overturned.
