Spice Jet vs Kalanithi Maran: Delhi HC directs Spice Jet to deposit Rs.579 crores in the name of HC Registrar [Read Order]
Delhi High Court has directed the Spice Jet and Sun Group to take the necessary steps for the purpose of constitution of Arbitral Tribunal to settle the share transfer disputes between them. The Bench has also directed that Rs.579 crores shall be deposited by the respondents without prejudice in five equal monthly instalments by way of fixed deposit for twelve months in the name of Registrar General of this Court.
Justice Manmohan Singh’s Order came on two Petitions filed by Sun Group and Kalanithi Maran. Maran and Sun Group approached the High Court alleging though he gave the company Rs 679 crore, the current management under Ajay Singh was not issuing 189 million convertible warrants as promised. The Petitions were filed seeking the following reliefs
- pass an ad-interim ex-parte order restraining Respondent No.1 and Respondent No.2 from allotting/ transferring/issuing/ alienating and/or creating any third party interest and/or encumbrance on any shares of the Company;
- pass an ad-interim ex-parte order directing the Respondents to deposit a sum of Rs. 835,00,00,000/- (Rupees Eight Hundred and Thirty Five Crores only)in the Court i.e. the value of the shares due to the Petitioner against the Warrants and CRPS shares;
- pass an ad-interim ex-parte order attaching the bank accounts of the Respondents bearing Nos. 000705011602 held in ICICI Bank Ltd, 9A Phelps, Connaught Place, New Delhi-110001, 000381400002337 held in Yes Bank, 11/48, Shopping Centre, Malcha Market Chanakyapuri, New Delhi- 110021, 05860200001369 held in Bank of Baroda, Parliament Street, New Delhi-110001, 04852320000132 held in HDFC Bank Ltd, B-1, Vaniya Kunj, Enkay Tower, Udyog Vihar, Phase V, Gurgoan-122001, Haryana, 50000741832 held in Allahabad Bank, 2nd Floor, 37, B.S. Marg Fort, Industrial Finance Branch, Mumbai- 400023, Ale nos. 0361200001681086, 036109000143003 and 510909010018546 held in City Union Bank Ltd, Keerthis, 67, Mandaveli Street, Chennai- 600028. pending adjudication of the disputes;
- confirm the above prayers in (a) to (c) above upon hearing the parties.
Disposing the Petition, Justice Manmohan Singh held as follows:
“Without expressing anything on merit, as all the disputes have to be decided by the Arbitral Tribunal the part prayers in both petitions are allowed. The said amount of Rs.579 crores shall be deposited by the respondents without prejudice in five equal monthly instalments by way of fixed deposit for twelve months in the name of Registrar General of this Court. The first instalment amount shall be deposited by the respondents on or before 7th August, 2016. Thereafter, the remaining instalments shall be deposited on every succeeding month. Till the time all five instalments are deposited, the interim order shall continue. As and when the amount is deposited, the petitioners would be at liberty to file the application for releasing of amount, the same would be considered on merit as well as the issue of interim orders”., said the Court.
The Court has directed that both the parties shall take the necessary steps for the purpose of constitution of Arbitral Tribunal and once the Tribunal is constituted, it is expected that Arbitral Tribunal would publish the award within the period of twelve months.
“Liberty is also granted to move the application under Section 17 of the Act before the Arbitral Tribunal if so necessary or under any change of circumstances”, states the Order.
Read the order here.