The Delhi High Court has ordered low-fare airline SpiceJet to pay ₹380 crore to its former promoter, Kalanithi Maran of the Sun Group, and asked it to submit an affidavit of assets within four weeks.
The ruling is a setback to the airline, which surprised with a four-fold increase in earnings to ₹106.8 crore in the December quarter, and comes amid a battle with aircraft lessors over payments. Mint has reviewed a copy of the order.
The High Court ruling on May 29, 2023 originates from a long-running battle between the Maran family and the current promoter, Ajay Singh, and SpiceJet, over contractual obligations. Maran sued SpiceJet in 2017 for allegedly causing losses by failing to issue convertible warrants and preference shares to him and his KAL Airways.
SpiceJet ended up paying Maran a principal amount of Rs.579.08 crore after a protracted court fight, but the interest portion was pending. The interest stood at ₹242 crore in October 2020, accumulated to ₹362 crore by February 2023 and finally touched ₹380 crore.
A SpiceJet spokesman said SpiceJet is already in discussions with Maran and KAL Airways for a comprehensive settlement. “We are confident of resolving the same mutually as we have already paid the entire principal amount earlier awarded by an arbitral tribunal.”
Sun Group had no comment.
Shares of SpiceJet were trading at ₹26.85, up 3.95%.