SpiceJet rejects ₹1,323 Crore claim from KAL, Kalanithi Maran

28 May 2024 , 02:21 PM

SpiceJet has rejected the ₹1,323 Crore claim  that former promoter Kalanithi Maran and KAL Airways have made against the company. Maran and KAL claim that they had injected Rs 677 crore in SpiceJet against issuance of preference shares and warrants. These warrants and preference shares were never issued, they claim.

SpiceJet stated in a stock exchange statement that “these assertions are not only legally untenable, but also a regurgitation of previously rejected claims by the Arbitral Tribunal and then the Delhi High Court.”

SpiceJet’s stock dropped during trading and was down roughly 1.9% as of 13:08 p.m., while the benchmark indices were trading flatly with a slight bias.

When Singh was offered a 58.46% share in SpiceJet by KAL Airways in January 2015, that is when the ownership battle between SpiceJet and Maran began.

On Monday, Maran and KAL Airways announced their intention to sue SpiceJet, helmed by Ajay Singh, for damages exceeding ₹1,323 Crore. They added that they would contest the most recent Delhi High Court ruling in the ongoing conflict between the two parties.

A division bench of the court overturned a single judge bench ruling that had maintained an arbitral verdict on May 17, demanding that SpiceJet and its promoter, Ajay Singh, reimburse Maran with interest totaling ₹579 Crore.

The panel granted Singh and SpiceJet’s appeals contesting the July 31, 2023, judgement of the single judge and remanded the case to that court so that the petitions contesting the arbitral award could be considered again.

In response to that ruling, SpiceJet announced last week that it would like a reimbursement of ₹450 Crore from the ₹730 Crore it had previously paid to Sun Group chairman and erstwhile promoter Kalanithi Maran and his company.

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