Delhi High Court Rejects SpiceJet’s Plea To Stay Single Judge Order Upholding Arbitral Award In Favour Of Ex-Promoter Kalanithi Maran

The Delhi High Court on Thursday refused to stay a single judge order upholding an arbitral award asking SpiceJet and its promoter Ajay Singh to refund of Rs. 579.08 crores plus interest to media baron Kalanithi Maran.

A division bench comprising of Justice Yashwant Varma and Justice Dharmesh Sharma dismissed the plea moved by SpiceJet seeking stay of the single judge order passed on July 31.

The court issued notice on the appeal preferred by the entity and sought response of Maran and his firm Kal Airways while listing the matter for hearing on October 31.

Meanwhile, a petition filed by Maran and his firm seeking execution of the arbitral award was listed before Justice Yogesh Khanna today.

The single judge directed Spicejet and Singh to pay Rs. 100 crores to Maran and Kal Airways by September 10 and listed the case for hearing on September 11. The court said that in case the amount is not paid, it may consider attaching properties of Spicejet and Singh.

About the Dispute and Single Judge Order

The dispute between the parties arose under a “Share Sale and Purchase Agreement” executed between them in the year 2015, wherein Maran and his firm had sold their entire 58.46 per cent stake in SpiceJet to its co-founder, Singh.

Maran sued SpiceJet in 2017 claiming that the airline had breached the share transfer agreement by not issuing share warrants and preference shares to him and his firm Kal Airways. He claimed that for the said purpose, he had deposited Rs. 679 crores with SpiceJet.

In 2018, an Arbitral Tribunal awarded a refund of Rs. 579.08 crores plus interest to Maran and his firm. The Tribunal awarded Rs. 308.21 crores for refund of the amount paid towards issue of warrants and Rs. 270.86 crores towards the amount paid for issue of Non-Convertible Cumulative Redeemable Preference Shares.

While upholding the arbitral award, the single judge also dismissed Maran’s challenge to the award where his claim for damages and restitution of 58.46% shareholding in SpiceJet was rejected by the Tribunal.

Case Title: SpiceJet Limited vs Kal Airways Pvt Ltd & Ors. and other connected matter

Citation: 2023 LiveLaw (Del) 744