SpiceJet to pay Rs 22.5 cr to Kalanithi Maran, $1.5 mn to Credit Suisse as per court directive

SpiceJet Ltd informed in a press release late on Monday evening that it has made a payment of Rs 77.5 crore to Kalanithi Maran and it will complete the payment of Rs 100 crores by Tuesday. As per the directions of the Delhi High Court, the airline said that it will pay the remaining Rs 22.5 crore on Tuesday.
 
In a statement, the airline said: "SpiceJet acknowledges the legal process and is committed to complying with all court directives and obligations in the Credit Suisse case and will make the payment of $1.5 million as per the court directive. Till date, SpiceJet has already paid a total of $8 million to Credit Suisse. SpiceJet remains committed to the highest standards of transparency and legal compliance. This liability is an old one and predates the current promoter taking over the company (sic)." 

Delhi High Court orders Ajay Singh, SpiceJet to pay Maran remaining Rs 32.5 crore by Tuesday

Earlier on Monday, the Delhi High Court ordered SpiceJet and its Chairman and Managing Director (CMD) Ajay Singh to pay the remaining Rs 32.5 crore of dues owed to Sun Group Chairman Kalanithi Maran by the end of the day or the next day, depending on banking hours. 

Maran’s lawyers argued that Singh had time from August 24 to now but they delayed the payment until now. Singh’s lawyers told the Court that they had a cheque of Rs 37.5 crore in favour of Maran, having already paid Rs 62.5 crore. 

In August, the Court had directed SpiceJet to pay a total of Rs 100 crore to Maran and his investment vehicle Kal Airways by September 11, denying interim relief to SpiceJet and Singh.  

Singh and SpiceJet had challenged a single-judge order upholding an arbitral award in favour of Maran and Kal Airways.

SpiceJet told the Court it was "struggling to stay afloat" after the court order, directing it to pay the money owed to its former owner, Maran. The airline also said it would honour the Court order and "make the specified payment within the prescribed timeframe".

In 2018, SpiceJet lost an arbitration case of share transfers from former owner Maran to the company's new management in 2015, making the airline liable to pay $70 million plus interest. Maran later took SpiceJet to court saying he was still owed $48 million. 

The next hearing on the matter is scheduled for October 3. 

With inputs from agencies