Budget carrier SpiceJet on Tuesday dismissed a renewed damage claim exceeding ₹1,323 crore from former promoter Kalanithi Maran and KAL Airways, terming it “legally untenable.”
“These assertions are not only legally untenable but also a regurgitation of previously rejected claims by the arbitral tribunal and then the Delhi High Court,” the airline said in the filing.
According to the carrier, KAL Airways and Maran initially sought damages of more than ₹1,300 crore during the arbitration proceedings.
“This claim was thoroughly examined and subsequently rejected by a panel of three retired Supreme Court judges. Following this, KAL Airways and Kalanithi Maran appealed to the single-judge bench of the Delhi High Court, seeking the same amount in damages, which was again rejected by the court,” it said.
SpiceJet also said the two parties chose not to pursue any appeal before the appellate jurisdiction and consequently, the matter attained finality.
The dispute centres around a 2015 deal where Singh, who previously owned SpiceJet, bought it back from Maran after financial difficulties grounded the airline.
As part of the agreement, Maran and KAL Airways claimed to have paid SpiceJet ₹679 crore for issuing convertible warrants and preference shares. Maran later approached the Delhi High Court in 2017, alleging SpiceJet failed to deliver these shares or return the funds.
On May 27, 2024, KAL Airways and Maran announced their intention to seek over ₹1,323 crore in damages from SpiceJet and its current chief Ajay Singh. Additionally, they planned to challenge a recent Delhi High Court order favouring SpiceJet.
On May 17, a division bench of the court set aside a single judge bench order that had upheld an arbitral award asking SpiceJet and its promoter Ajay Singh to refund ₹579 crore plus interest to Maran.
The bench allowed the appeals filed by Singh and SpiceJet challenging the single judge’s order passed on July 31, 2023, and remanded the matter back to the court concerned to consider the petitions challenging the arbitral award afresh.
Meanwhile, the Jalan Kalrock Consortium, the successful bidder of Jet Airways, on Tuesday withdrew its plea before the NCLAT to move ₹200 crore, which it paid to lenders, to an escrow account.
