The Supreme Court on Thursday asked Kalanithi Maran, the former promoter of SpiceJet, to consider an offer made in court by the air carrier to settle a prolonged share transfer dispute between them.
A Bench led by Chief Justice of India N.V. Ramana asked Mr. Maran and and his firm KAL Airways, represented by senior advocate Maninder Singh, to consider SpiceJet’s offer of a total ₹600 crore in cash to settle the dispute with no room for further litigation.
“SpiceJet has offered to pay ₹600 crore in cash in the share transfer case with its former promoter Kalanithi Maran and his firm KAL Airways for a full and final settlement of all disputes. The offer was made during the hearing in the Supreme Court today,” a SpiceJet statement said.
The court was hearing a plea by Mr. Maran and KAL to lift a November 6, 2020 order of stay on a Delhi High Court direction to the airline to deposit ₹243 crore as interest on the principal amount of ₹578 crore involved in the dispute.
Senior advocate Mukul Rohatgi, for the airline, said out of the principal amount of ₹578 crore awarded in arbitration, SpiceJet had already paid ₹308 crore in cash and deposited a bank guarantee for ₹270 crore. Mr. Rohatgi proposed to pay the bank guarantee equivalent amount of ₹270 crore in cash and top it up with an additional ₹22 crore, aggregating the total payout to ₹600 crore as full and final settlement of all disputes between the parties.
The airline, speaking through Mr. Rohatgi, also gave a second offer for Mr. Maran and KAL to consider, in case they did not agree to the first. This offer would entail the airline disbursing a certain amount, ₹100 crore, from the bank guarantee of ₹270 crore, to Mr. Maran. The litigation would be fastracked.
Mr. Rohatgi said the bone of contention was the interest charged.
The court asked Mr. Maran and KAL to consider the offer and listed the case for Monday.
“We have gone through three years of COVID. The air industry has been hit hard,” Mr. Rohatgi submitted.
“We have been waiting for three years...” Mr. Singh responded.
Mr. Rohatgi also submitted that a separate dispute between SpiceJet and a Swiss company over the non-payment of more than $24 million towards maintenance, repairs and overhaul of aircraft engines and components “has already been settled.” On January 28, the Apex Court had given the parties three weeks to try to resolve the issue.
KAL and Mr. Maran had transferred their shareholding to Ajay Singh in December 2014. The dispute relates to non-issuance of warrants and preference shares in favour of Mr. Maran.
