The Supreme Court of India has directed SpiceJet, the budget carrier, to pay the entire arbitral amount of Rs 380 crore to its former promoter, Kalanithi Maran. The court emphasized the need for businesses to operate with "commercial morality."
A bench comprising Chief Justice D Y Chandrachud and Justice P S Narasimha rejected SpiceJet's request for an extension of time and declared that the entire award is now executable.
The dispute between SpiceJet and Kalanithi Maran, the former promoter, stems from a share transfer disagreement. In 2015, Maran and his company, KAL Airways, sold their 58.46% stake in SpiceJet to Ajay Singh, the current chairman and managing director. Maran and KAL Airways later demanded the transfer of 180 million warrants redeemable as equity shares, which were not fulfilled.
The Delhi High Court ruled in June that SpiceJet must pay Rs 380 crore to Maran and provide details of its assets within four weeks. The Supreme Court had previously ordered SpiceJet to pay Rs 75 crore against Maran's claim of Rs 362.49 crore in interest dues within three months under a 2018 arbitration award.
SpiceJet stated that it had reserved the remaining Rs 270 crore and provided a bank guarantee. The airline intended to fulfill its obligations according to the Supreme Court's directions. However, the court insisted on immediate compliance with its orders and emphasized that the Delhi High Court would execute the award.
Picture Source : <a href="https://commons.wikimedia.org/wiki/File:SpiceJet_VT-SZI_at_Bangalore,_Sept_2015.jpg">Venkat Mangudi</a>, CC0, via Wikimedia Commons
