Delhi HC division bench allows SpiceJet's appeal against order directing it to refund over Rs 270 crore to Sun Group's Kalanithi Maran
May 17, 2024
New Delhi [India], May 17 : The Division Bench of Delhi High Court on Friday allowed an appeal moved by SpiceJet and its Chairman and Managing Director (CMD) Ajay Singh challenging a single bench order directing SpiceJet to refund over Rs 270 crore to Sun Group promoter Kalanithi Maran and Kal Airways.
Division Bench, comprising Justice Yashwant Varma and Justice Ravinder Dudeja, set aside the single bench order passed in July last year, affirmed the Arbitral Award dated July 20, 2018, passed by an Arbitral Tribunal comprising of three retired Supreme Court Judges.
SpiceJet and its Chairman and Managing Director (CMD) Ajay Singh filed an appeal before the Division bench of Delhi High Court challenging a single judge's order directing them to refund over Rs 270 crore to Sun Group promoter Kalanithi Maran and Kal Airways.
A bench presided over by Justice Chandra Dhari Singh on July 31, last year while pronouncing the Judgment in section 34 Petition moved by the parties affirmed the Arbitral Award dated July 20, 2018, passed by an Arbitral Tribunal comprising of 3 retired Supreme Court Judges.
The Arbitral Award directed that Decree Holders - Kal Airways and Kalanithi Maran are entitled to a refund of Rs 308 crores towards the Warrants and a refund of the amount of Rs 270 crore towards Cumulative Redeemable Preference Shares (CRPS).
Furthermore, Kal Airways and Kalanithi Maran were also awarded an interest rate of 12 per cent towards Pendente lite and an interest rate of 18 per cent from the last date of the due date in terms of the Arbitral Award in case the payments, as directed, to be made by Spicejet and Ajay Singh is not made within two months from the date of award.
Spicejet and Ajay Singh had filed section 34 Petitions to challenge and set aside the Arbitral Award to the extent that the award directed the refund of Rs 270 crore to Kal Airways and Kalanithi Maran.
Spicejet and Ajay Singh had further sought to set aside the award seeking a waiver of 12 per cent interest towards warrants as well as setting aside the interest of 18 per cent granted under the award on both warrants and CRPS.
Kal Airways and Kalanithi Maran also filed Section 34 Petition seeking setting aside of award to the extent no interest was granted on the amount of Rs 270 crore, as well as damages for non-issuance of Warrants and CRPS.
