The Delhi High Court has asked low cost carrier SpiceJet to deposit Rs 579 crore in connection with the share transfer dispute with its previous owner Kalanithi Maran.
Justices S Ravindra Bhat and Yogesh Khanna dismissed SspiceJet’s Aajay Singh’s appeal against the July, 2016 order of the single judge asking the budget carrier to deposit the amount.
The Division bench, however, provided some relief to SpiceJet by allowing it to deposit Rs 579 crore in two tranches whereas the single judge had directed the same be deposited in 12 months time.
Singh had challenged the single judge order passed on a civil suit initiated by Sun Group chief Kalanithi Maran and his Kal Airways.
In their suit, Maran and his airline company had sought issuance of stock warrants in SpiceJet to them as per a sale purchase agreement (SPA) of 2015 which had led to the transfer of ownership of the budget carrier to Ajay Singh.
Maran and Kal Airways had alleged that despite giving Rs 579 crore to SpiceJet, the carrier had failed to issue them the warrants or allot tranche one and two of Convertible Redeemable Preference Shares and that the amount was not utilised for paying statutory dues due to which they were also facing prosecution.
Read the Judgment Here