On Friday, Delhi High Court asked the Indian budget carrier, SpiceJet to deposits Rs 580 crore in the share transfer dispute. The airlines and sun group Chief Kalnithi Maran who owns Kal Airways is asked to deposit amount in five installments over the period of five months.
The High court’s hearing comes after the plea filed by the Kalnithi against SpiceJet for non-issuance of warrants worth Rs. 18 crore in favour of former promoter Maran after the transfer of ownership in 2015. Maran’s company in the year 2015 sold its 58.46 percent shares or 350.4 million airline shares to SpiceJet Co-founder Ajay Singh. Under the ownership deal, they were ready to receive the redeemable warrants in return for Rs. 690 crores which they have spent on the SpiceJet towards debt payment and operating costs during the time of ownership transfer.
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The court ordered both the parties to constitute an arbitral tribunal and said that the tribunal should give its final decision within 12 months of its formation. Justice Manmohan Singh while announcing the judgment said that the Rs. 580 crore to be deposited by SpiceJet will remain with the court till the final decision of the tribunal. SpiceJet is also ordered by HC not to divest its shares till the final decision.