SpiceJet, Singh told to pay Rs 100Cr to Maran

The Delhi High Court's division bench has instructed SpiceJet and its chairman, Ajay Singh, to pay former airline promoter Kalanithi Maran Rs 100 crore by September 10 as a demonstration of their commitment to resolving their outstanding dues. The court has also cautioned that if the payment isn't completed by September 10, the company's assets may be attached. SpiceJet has affirmed its intention to comply with the court's order within the specified timeframe.

 

During the hearing, Maran's representative highlighted that the owed amount from the airline and Singh had increased to Rs 397 crore. However, the court emphasized its focus solely on settling liabilities towards Maran, giving Singh and the company an opportunity to demonstrate their genuine intent to settle the dues. The court directed a payment of Rs 100 crore by September 10.

 

This case pertains to Maran's application for the enforcement of an arbitral award in his favor against SpiceJet. The Delhi High Court's single-judge bench upheld the award's validity on July 31. SpiceJet and Ajay Singh challenged this decision before the division bench, which admitted their application without staying the single judge's ruling. The Supreme Court's July 7 ruling held the arbitral award as executable due to SpiceJet's failure to adhere to payment timelines set in February.

 

As part of the February directive, the Supreme Court ordered the encashment of SpiceJet's Rs 270 crore bank guarantee and mandated the payment of Rs 75 crore in interest within three months. The recent developments highlight the ongoing legal battle regarding the settlement of dues between the parties involved.

 

Source: Media Reports

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