New Delhi: A few days after a favourable ruling by the Delhi High Court in a share transfer dispute, budget airline SpiceJet on Wednesday said it will seek a refund of Rs 450 crore from its former promoter Kalanithi Maran, and his firm, KAL Airways.
“SpiceJet will seek a refund of Rs 450 crore out of the Rs 730 crore it has previously paid to former promoter Kalanithi Maran and his firm, KAL Airways, following the Delhi High Court’s order on May 17,” Gurugram-headquartered firm said in a statement.
A division bench of the Delhi High Court on May 17 set aside a single judge bench order that had upheld an arbitral award asking SpiceJet and its promoter Ajay Singh to refund Rs 579 crore plus interest to Maran.
The court’s order provided a major relief to SpiceJet which has been grappling with a cash crunch for several quarters amid multiple legal battles over unpaid dues to aircraft lessors, engine lessors, lenders and Maran himself.
The dispute goes back to 2015, when Maran transferred his entire shareholding in SpiceJet to Ajay Singh, the current chairman and managing director of the company. In July 2018, an arbitration panel ordered SpiceJet to pay Maran and his company KAL Airways, Rs 579 crore plus interest. In 2020, the Delhi High Court asked SpiceJet to deposit Rs 243 crore as interest.
Following the court orders, SpiceJet has paid a total of Rs 730 crore, comprising Rs 580 crore in principal along with an additional Rs 150 crore towards interest to Maran and KAL Airways. “With the setting aside of the impugned order, SpiceJet is set to receive a refund of Rs 450 crore,” the budget airline noted in the statement.
However, KAL Airways rejected SpiceJet’s claims. “Any suggestion that the airline is entitled to a refund in our opinion is grossly misconceived and intended to cause mischief and to mislead the public, particularly investors,” Chennai-headquartered KAL Airways said in a statement.
KAL Airways further added that it will continue to pursue the refund of pending dues amounting to Rs 353.50 crore from SpiceJet.
Share price of SpiceJet surged by 1.67 per cent to Rs 62.02 on the BSE. At the Wednesday closing level, the market capitalisation of SpiceJet stood at Rs 4,778.77 crore.
Published 22 May 2024, 07:20 IST