Follow my blog with Bloglovin
Wednesday , 23 August 2017
Breaking News

Supreme Court Asks SpiceJet To Pay Rs 579 Crore To Previous Owner Kalanithi Maran

The Supreme court today directed the airline to pay Rs 579 crore to Mr Maran.

The Delhi High Court had earlier this month directed the airline to deposit Rs 579 crore in connection with the share transfer dispute with its previous owner Kalanithi Maran, but provided it some relief by allowing it to deposit the amount in two parts.

SpiceJet had challenged the High Court’s order in the Supreme Court.

Sun Group chief Kalanithi Maran and his Kal Airways had in their suit sought issuance of stock warrants in SpiceJet as per a sale purchase agreement of 2015 which had led to transfer of ownership of the budget carrier to Ajay Singh.

Mr Maran and Kal Airways had alleged that despite giving Rs 579 crore to SpiceJet, the carrier had failed to issue them the warrants and that the amount was not utilised for paying statutory dues.

Under the sale purchase agreement, Mr Maran and Kal Airways had transferred their entire 350,428,758 equity shares (58.46 per cent stake) in the airline to Ajay Singh.

According to the agreement, Mr Maran and Kal Airways were to receive the redeemable warrants in return for the amount they were to give to the airline towards operating costs and debt payment, Mr Maran had said in his plea.

SpiceJet had said that the change of ownership was effected as a rehabilitative measure to address the liability of Rs 2,000 crore incurred by the airline when it was under the management of Mr Maran.

It had also claimed that every penny had been utilised towards operations and discharge of liabilities.

Comments are closed.

Scroll To Top
badge