Dynamite News After Delhi HC judgement, SpiceJet to seek refund of Rs 450 crore from Kalanithi Maran
After the recent Judgement by Delhi HC Division Bench ruling in favour of SpiceJet and Ajay Singh in the Share Transfer Case SpiceJet will seek a refund of INR 450 crore out of the INR 730 crore it has previously paid to former promoter Kalanithi Maran and his firm, KAL Airways. Read further on Dynamite News:
New Delhi: After the recent Judgement by Delhi High Court Division Bench ruling in favour of SpiceJet and Ajay Singh in the Share Transfer Case SpiceJet will seek a refund of INR 450 crore out of the INR 730 crore it has previously paid to former promoter Kalanithi Maran and his firm, KAL Airways.
Through press communications, SpiceJet stated that in its ruling, the Division Bench held that the Single Judge had erred in dismissing the Section 34 petitions of Ajay Singh and SpiceJet without due consideration of the claims of patent illegality and the order of refund passed against SpiceJet despite admitted breaches on the part of KAL Airways and Kalanithi Maran.
The Division Bench of the Delhi High Court ruled on May 17 in favour of SpiceJet and its promoter, Ajay Singh, in the long-standing share transfer case against former promoter Kalanithi Maran and his firm, KAL Airways. This ruling overturns a previous decision by a single-judge bench, positioning SpiceJet to claim a substantial refund based on legal advice.
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SpiceJet has paid a total of Rs 730 Crore, comprising Rs 580 crore in principal along with an additional Rs 150 crore towards interest to Maran and KAL Airways. With the setting aside of the impugned order, SpiceJet is set to receive a refund of INR 450 crore, as stated in its press communications.
The appeal brought forth by SpiceJet and Ajay Singh challenged several critical issues related to the award of refund and the justification of interest in the case. The Division Bench found substantial merit in these challenges, noting that they were not adequately addressed in the previous order dated July 31, 2023.
The Court has also noted that interest amounting to penal interest had been charged despite SpiceJet not being in any breach of the Share Purchase Agreement. These facts not being considered by the single judge; the appeals of Ajay Singh and SpiceJet have been allowed, and the impugned judgement dated July 31, 2023, has been set aside.
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The Division Bench of Delhi High Court on May 17, allowed the appeal moved by SpiceJet and its Chairman and Managing Director (CMD) Ajay Singh's challenging 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 and affirmed the Arbitral Award dated July 20, 2018, passed by an Arbitral Tribunal comprising three retired Supreme Court Judges. (ANI)