The defendants challenged the order saying that single bench did not have jurisdiction over the case
Delhi High Court has dismissed the plea of SpiceJet and its promoter Ajay Singh against a single judge order that directed the low-cost carrier to deposit Rs 579 crore in relation to a share transfer conflict with the airline's previous owner.
The single bench's order had been pronounced last year on a civil suit filed by Sun Group's chief Kalanithi Maran and his airline firm Kal Airways, the erstwhile owner of SpiceJet.
The high court on Monday further asked SpiceJet to deposit in court a part of the amount in the form of bank guarantee by the end of this month and the remaining to be paid in cash by the end of next month.
As per the facts of the case, the petitioner 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 his airline company had alleged before the single judge 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.
Apart from ordering that the amount to be deposited in the court, the single judge had also asked SpiceJet and Maran to appoint an arbitral tribunal to decide the share transfer dispute between them in a year. The amount was to be deposited in five instalments with the first one in August 2016, the court had said.
The defendants had later challenged the order citing that the single bench did not have jurisdiction over the case.
Singh, who had co-founded SpiceJet in 2005, had sold his majority stake in the airline to Kalanithi Maran of Sun TV for Rs 750 crore in 2010. But when the carrier ran into trouble, Singh again came on board by acquiring 58% equity stake from Marans in January 2015.
THE TUSSLE
- SpiceJet was directed to deposit Rs 579 crore in relation to a share transfer conflict with Kal Airways
- The defendants challenged the order saying that single bench did not have jurisdiction over the case
(With inputs from PTI)
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