India’s Delhi HC passes deposit order to SpiceJet in share dispute

The Delhi High Court has given six weeks to Indian low-cost carrier SpiceJet for depositing ₹2.43bn ($33.10m) in share transfer dispute with a former promoter.

The promotor is Sun group owner and KAL Airways non-executive chairperson Kalanithi Maran.

In 2015, SpiceJet’s promoters had decided to sell and transfer their full holding of 58.46% in the airline to co-founder and present owner Ajay Singh.

The lawsuit stems from non-issuance of warrants and preference shares in favour of Maran even after paying SpiceJet for the same. The money has also not been returned.

The litigation was launched in 2017, and in 2018, Maran was awarded a refund, including interest.

The court order states: “Judgement Debtor (in this case, SpiceJet and promoter Ajay Singh) is directed to deposit ₹2.4bn ($32m) post-award interest sum within a period of six weeks. If the amount is not deposited, the decree-holder (in this case, Kalanithi Maran and KAL Airways) shall be at liberty to seek directions to maintain status quo with respect to the shareholding of SpiceJet and Ajay Singh.”

In July, SpiceJet planned to operate its maiden long haul flight to Amsterdam on 1 August.