Delhi HC directs SpiceJet to deposit Rs 250 crore in Maran share transfer case

Shares of SpiceJet dropped nearly 4% after Delhi High Court dismissed aviation company's plea against transfer of Rs 579 crore to Kalanithi Maran in a share transfer dispute.

At 1453 hours the shares of the company were trading at Rs 127.5 per piece, down 3.86% or Rs 4.75 on BSE. 

According to a media report, single-judge bench of Delhi High Court has directed SpiceJet to pay Rs 579 crore to Sun Group chief, Kalanithi Maran. The High Court has asked SpiceJet to deposit Rs 250 crore in cash by August 31. 

Maran and his airline have alleged in their plea that despite giving around Rs 579 crore to SpiceJet, the carrier failed to issue them the warrants or allot them tranche 1 and 2 of Convertible Redeemable Preference Shares and the amount was not utilised for paying statutory dues due to which they were also facing prosecution.

Kalanithi Maran along with his Kal Airways were to recieve redeemable warrants for spending money on operational cost & debt payment.

ALSO READ: HC asks SpiceJet, Maran to resolve share transfer dispute by appointing arbitral tribunal

Last year, Delhi High Court had asked Maran and his Kal Airways to appoint an arbitral tribunal to decide the share transfer dispute between them in a year, a PTI report had said. 

On July 29, 2016, Justice Manmohan Singh had directed SpiceJet to deposit the amount of Rs 579 crore in a fixed deposit in the name of Registrar of the Delhi High Court for 12 months, the report had said.

Under the sale purchase agreement (SPA), Maran and Kal Airways had transferred their entire 350,428,758 equity shares (58.46 per cent stake) in the airline to Ajay Singh.

ALSO READ: SpiceJet stocks up nearly 3% in early trade after chief Ajay Singh settles case with Sebi

According to the SPA, Maran and Kal were to receive the redeemable warrants in return for around Rs 679 crore that they were to give to the airline towards operating costs and debt payment, the petition has claimed.

As per the PTI report, SpiceJet had earlier told the court that the change of ownership was effected as a rehabilitative measure to address the liability of Rs 2,000 crore incurred by the airline when it was under the management of Maran.

It had also claimed that every penny has been utilised towards operations and discharge of liabilities.