Top Court Asks Spicejet To Encash Bank Guarantee, Pay Rs 270 Cr To Maran: Report

Supreme Court has asked budget airline SpiceJet to encash bank guarantee and pay Rs 270 crore to Kalanithi Maran in the next two weeks.

The SC bench was listening to SpiceJet’s appeal against a high court order which had asked the airline to deposit about Rs 243 crore as interest in relation with the share transfer dispute with its former promoter, Maran, and Kal Airways, according to a report by a media house.

In a statement, SpiceJet said, “With regards to the Supreme Court order in the matter relating to the dispute between SpiceJet and its former promoter Kalanithi Maran and his firm KAL Airways, it is clarified that the overall amount in dispute is Rs 578 crore of which Rs 308 crore has already been deposited.”

The airline said that the remaining amount of Rs 270 crore will be reserved with the company in cash against a bank guarantee. Further, the top court directed that the additional amount of Rs 75 crore would be paid within the period of three months.

In November 2020, SC had stayed Delhi HC’s order which had asked SpiceJet to deposit Rs 243 crore as interest in connection with the share transfer dispute. The airline and promoter Ajay Singh were asked to deposit around Rs 243 crore as interest payable on Rs 579 crore, which the high court had, in 2017, asked the airline to deposit under the 2018 arbitration award in the share-transfer dispute.

The high court had granted six weeks to SpiceJet to make the payment and the deadline for the same, according to a September 2 order, which expired on October 14, 2020.

Maran and his firm had moved the high court for attachment of the entire shareholding of Singh in Spicejet and taking over the management for the non-payment of Rs 243 crore.

SC had taken note of the airline’s appeal and stayed HC’s order.