The Supreme Court of India recently sought Kal Airway’s response to Spice Jet’s offer for full settlement of the share transfer dispute between Spice Jet and its former promoter Kalinathi Maran and his its former promoter Kalanithi Maran, and his firm Kal Airways.
The Bench has asked the Airways to consider and revert to the following proposal by Spice Jet,vand decide if the offer is feasible for them:
Spicejet will give 300 crores, but there will be final settlement of the dispute and there would be no further litigation
Out of the Bank Guarantee of 270 crores deposited by Spice jet with the High Court it will 100 crore and the Court may pass direction regarding expeditious hearing of the Section 34 petitioners pending before the Delhi High Court.
Factual Background
The Bench was hearing an application filed by KAL Airways seeking vacation of stay granted by Supreme Court on Delhi High Court’s order directing Spice Jet to deposit Rs 243 crore in their dispute.
The application has been filed in Spice Jet’s special leave petition challenging orders passed by the Delhi High Court 2020 in a share transfer dispute between Maran and the airlines.
Observation of the High Court
The High Court through the impugned orders had directed the airlines and its promoter Ajay Singh to deposit Rs 243 crore as interest payable on Rs 579 crore, which Delhi High Court had directed them to pay 2017 under the 2018 arbitration award in the share transfer dispute.
The Division bench, however , provided some relief to Spice Jet by allowing it to deposit Rs 579 crore in two tranches whereas the single judge had directed the same to be deposited in 12 months time.
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