SpiceJet seeks Delhi High Court extension to deposit ₹50 crore in Kal Airways dispute

SpiceJet’s counsel submitted that the airline received the first tranche of emergency credit support from the Central government in June and the funds were used for its operations

New Delhi: SpiceJet and its promoter Ajay Singh on Monday urged the Delhi High Court to grant more time to deposit Rs 50 crore with the court registry in connection with a legal dispute with media baron Kalanithi Maran and Kal Airways.Justice Subramonium Prasad, before whom the application came up for hearing, listed it for September 21, the date when the main matter is already fixed.SpiceJet’s counsel submitted that the airline received the first tranche of emergency credit support from the Central government in June and the funds were used for its operations.Senior advocate Mukul Rohatgi, representing SpiceJet, said the company was expecting a second tranche from the government of India but it has not yet materialised.First Flight Turns Into Tarmac Protest: SpiceJet Passenger Revolts Over Three-Hour Delay & Faulty AC “I could have paid Rs 50 crore as per the undertaking given to the court but the second tranche has not materialised as yet. My only request to the court is that the matter was kept for September 21 to test the bonafide whether this first installment is paid. It was payable by August 27. Kindly grant an extension of four weeks from August 27 for depositing the first tranche of Rs 50 crore,” the counsel submitted.To this, the judge said he was not passing any orders as of today and listed the application for September 21.The high court had earlier directed SpiceJet and Singh to deposit around Rs 144 crore in the case arising from an arbitral award against them in their dispute with Maran.SpiceJet Bankruptcy Cases To Be Heard Afresh By New NCLT Bench After Lessor Settlement On July 13, SpiceJet had assured the court that it will deposit Rs 50 crore in 45 days with the court registry and the remaining Rs 94.50 crore would also be deposited in the next 90 days.The cash-strapped airline, in its fresh application, urged the court to also extend the timeline for depositing the subsequent tranche of Rs 94.50 crore by 45 days from the expiry of the extended period granted for depositing the first tranche.On May 4, the high court dismissed pleas by SpiceJet and Singh seeking a review of a January 19 order to deposit over Rs 144 crore in the case.The Supreme Court on May 19, however, asked the airline to approach the high court for extension of time to make the deposit.Senior advocate Jayant Mehta appeared for Maran, along with law firm Karanjawala & Co.On January 19, the high court had directed SpiceJet and Singh to deposit Rs 144 crore with the registry within six weeks against an admitted liability of Rs 194 crore pursuant to the arbitration award against them in their dispute with Maran. On March 18, the time to make the deposit was extended by four weeks.The matter arises from a dispute regarding the non-issuance of warrants in favour of Maran after the transfer of ownership to Singh, the controlling shareholder of SpiceJet.The dispute started after Singh took back control of SpiceJet in February 2015 amid a financial crisis at the airline.Maran and Kal Airways had transferred their entire 35.04 crore equity shares, amounting to a 58.46 per cent stake, in SpiceJet to its co-founder, Singh, in February 2015 for just Rs 2.In May 2024, a division bench of the high court set aside a single judge bench order which had upheld an arbitral award asking SpiceJet and Singh to refund Rs 579 crore plus interest to Maran.The division bench allowed the appeals filed by Singh and SpiceJet challenging the single judge's July 31, 2023 order and remanded the matter back to the court concerned to consider the petitions afresh.Disclaimer: This story is from the syndicated feed. Nothing has been changed except the headline.