Delhi high court issues notice to SpiceJet to submit financials in a week

SpiceJet has been sent a notice from the Delhi high court instructing it to submit its asset-liability affidavit and accounting statement within a week. Ajay Singh, the airline's chairman and managing director, has also been summoned by the court to personally appear for the hearing on August 24.

The court's decision is the result of a petition filed by Kalanithi Maran, the chairman of the Sun Group and a former SpiceJet promoter, asking for the attachment of 50% of the airline's weekly cash income in order to pay off a debt of Rs 393 crore that he is due by the company.

Maninder Singh, the attorney for Maran, urged the court to take action against SpiceJet for willful disregard of prior court decisions and for failing to deliver required paperwork during the hearing.

Sandeep Sethi, the attorney representing SpiceJet, pleaded against any punitive action, citing the court's extension of time until September 5 to comply with its orders and emphasising how such a move would hurt SpiceJet's already-tight business margins and employees. The court, however, issued notice to SpiceJet after hearing the arguments.

On July 31, the Delhi High Court upheld the arbitration verdict and ordered the carrier and Singh to pay Maran's Rs 579 crore in full, plus interest.

Source: Media Reports