Matters have worsened for the budget carrier SpiceJet amidst a legal battle with media baron Kalanidhi Maran and his company Kal Airways over an arbitral award.
Sun Group-owned KAL Airways categorically denied media reports suggesting an amicable settlement with SpiceJet over pending dues in a statement released on Monday.
“There is no question of an amicable settlement with SpiceJet”, adding that the matter “reached finality by virtue of the Supreme Court order dated July 7, 2023,” the statement said.
“We hope SpiceJet will comply with the Supreme Court orders and pay us the interest amount of Rs 386 crore forthwith,” it added.
In response to the developments, SpiceJet released a statement saying, “The payment of Rs 380 crore as directed to be paid by the Supreme Court in the matter relating to Mr Kalanithi Maran and his firm KAL Airways is only a security deposit amount arising from execution proceedings.”
The airline also reaffirmed its commitment to finding an amicable settlement, noting, “We remain committed to finding an amicable settlement in this matter.”
This comes two days after the Supreme Court denied SpiceJet’s request for additional time to make payments to Kalanithi Maran, in compliance with its earlier order from February. The court pulled up the low-cost carrier for filing the application and emphasised the need to uphold commercial morale.
Earlier, in February 2023, the top court disposed of the case directing that SpiceJet’s Rs 270-crore bank guarantee be encashed and asking the airline to pay Rs 75 crore towards interest within three months.
However, in May, Maran moved the Delhi High Court stating that SpiceJet has not complied with the order of the Supreme Court. The Delhi High Court, as a result, directed SpiceJet to pay the entire amount of interest of Rs 380 crore to Maran stating non-compliance with the SC’s order.
The latest order of the Supreme Court is a reiteration of its earlier order passed in February 2023. The main petition challenging the award by both parties is pending disposal by the Delhi High Court. “Orders in this petition have been reserved on April 18, 2023 and are awaited,” the statement added
In a related development, SpiceJet announced it will consider raising fresh capital on July 12 during the meeting of the board of directors.
In an exchange filing on Sunday, the company said, “meeting of the board of directors will be held on July 12, 2023 (Wednesday) to consider and approve, inter-alia, options for raising fresh capital through issue of equity shares and/or convertible securities on preferential basis, in accordance with the relevant provisions of applicable laws and subject to approval of the shareholders of the company and receipt of applicable regulatory approvals, as may be required.”