SpiceJet To Seek Rs 450 Cr Refund From Kalanithi Maran

SpiceJet will seek a refund of Rs 450 crores from former promoter Kalanithi Maran and his firm, KAL Airways, following a favourable ruling by the Delhi High Court on 17 May.

According to an official statement, the Division Bench of the Delhi High Court ruled in favour of SpiceJet and its promoter, Ajay Singh, overturning a previous decision by a single-judge bench. This ruling allows SpiceJet to claim a substantial refund out of the Rs 730 crores it had previously paid to Maran and KAL Airways.

SpiceJet had paid a total of Rs 730 crores, which included Rs 580 crores in principal and an additional Rs 150 crores as interest. With the recent court order setting aside the previous ruling, SpiceJet is set to receive a refund of Rs 450 crores.

The appeal by SpiceJet and Ajay Singh challenged several key issues related to the refund award and the justification of the interest. The Division Bench found merit in these challenges, noting that the single judge's order dated 31 July 2023, did not adequately address them.

The Division Bench held that the single judge had erred in dismissing the Section 34 petitions of Ajay Singh and SpiceJet without due consideration of the claims of patent illegality. The previous order had imposed a refund on SpiceJet despite admitted breaches by KAL Airways and Kalanithi Maran.

Additionally, the court noted that penal interest had been charged to SpiceJet despite there being no breach of the Share Purchase Agreement on their part. These factors were not considered by the single judge, leading to the Division Bench's decision to set aside the impugned judgement dated 31 July 2023, and allow the appeals of Ajay Singh and SpiceJet.