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Supreme Court asks SpiceJet to pay Rs 380 crore to Maran 

Meanwhile, it had also made it clear that in the event of failure by SpiceJet to pay, the entire award would become executable in entirety in favour of Kal Airways and Maran.

MUMBAI:  The Supreme Court (SC) on Friday directed budget airline SpiceJet to pay the entire arbitration award of Rs 380 crore to its former promoter Kalanithi Maran. The top court’s decision relates to the long-drawn-out dispute of seven years between the founders – Ajay Singh and Maran.

The court observed that the application for extension of time by two more months after the 3-month period had expired on May 13, by the airline is nothing but a delay tactic to not pay money even when there are Court orders directing the same.

It had passed an order on February 13, 2023, directing the airline to pay Rs 75 crore to Kal Airways and Kalanithi Maran within a period of three months towards its interest liability under the arbitral award. Meanwhile, it had also made it clear that in the event of failure by SpiceJet to pay, the entire award would become executable in entirety in favour of Kal Airways and Maran.

The SC bench comprising chief justice DY Chandrachud and Justice PS Narasimha noted a clear message needs to be sent across that the top court’s orders must be followed, particularly in “commercial matters”.
Commenting on the apex court’s judgment, a SpiceJet spokesperson said, “The present order of Supreme Court is the reiteration of its earlier order passed in February 2023.

The main petition challenging the award by both parties are pending disposal by the Delhi High Court. The matter relates to payment of interest on a principal amount of Rs 579 crore that has already been paid.” “SpiceJet is engaged in talks with Mr. Kalanithi Maran and his firm KAL Airways and remains committed to finding an amicable settlement. We remain confident of resolving this to the satisfaction of both sides through discussions,” it further added.

 

 

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