Live Events
as a Reliable and Trusted News Source Addas a Reliable and Trusted News Source Add Now!
(You can now subscribe to our
(You can now subscribe to our Economic Times WhatsApp channel
New Delhi: The Delhi High Court on Wednesday granted SpiceJet four additional weeks to deposit Rs 144 crore in an ongoing arbitration dispute, while rejecting the airline’s offer to submit an "unencumbered" land property as security in place of the payment.The airline had earlier cited a liquidity crunch and proposed to deposit the title deed of a property valued at around Rs 148 crore with the court registry instead of making the cash payment.However, the court declined the request, noting that the Supreme Court had already refused to interfere with its earlier order directing the deposit. The high court had, in January, asked SpiceJet to deposit the amount within six weeks.The dispute stems from a long-running share transfer case between SpiceJet chairman Ajay Singh and former promoter Kalanithi Maran along with KAL Airways. In February 2015, Maran and KAL Airways transferred their 58.46% stake in the airline to Singh.Senior counsel Amit Sibal , appearing for Spicejet, told Justice Subramonium Prasad on Tuesday that the airline has “a liquidity crunch”.“We are not in financial distress. But 40% of our flights, which go to the Gulf, have been cancelled due to war (West Asia conflict). We have suffered losses,” the counsel said, adding that the immovable property that the airline intended to give as security is valued at Rs 148 crore.The matter has since seen multiple rounds of litigation and arbitration. In 2018, an arbitral tribunal rejected Maran’s claim for damages but awarded a refund of Rs 579 crore with interest. Subsequent court proceedings have focused on enforcement of these financial obligations.In July 2023, the Supreme Court directed SpiceJet to pay Rs 380 crore to Maran, stressing the need for “commercial morality” in business dealings. The airline has faced judicial scrutiny for delays in complying with payment orders, with the top court earlier imposing costs and questioning the delay."Is this a joke or what?" Justice PS Narasimha had said, while imposing costs of Rs 1 lakh for not paying so far.