Shares of budget carrier SpiceJet surged over 3 per cent on Friday after a ruling by a division bench of the Delhi High Court. The counter opened flat at Rs 61 but gained 3.6 per cent to touch the day's high of Rs 63.25. The counter had closed at Rs 61 in the last trading session. Last seen, it was trading at Rs 62.49.

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

The shares of SpiceJet, which has a market cap of Rs 4,895, have a 52-week high of Rs 77.50 and a 52-week low of Rs 22.65. 

"SpiceJet will seek a refund of INR 450 Crores out of the INR 730 Crores it has previously paid to former promoter Kalanithi Maran and his firm, KAL Airways, following the Delhi High Court’s order on May 17. The Division Bench of the Delhi High Court ruled on May 17 in favour of SpiceJet and its promoter, Ajay Singh, in the long-standing share transfer case against former promoter Kalanithi Maran and his firm, KAL Airways. This ruling overturns a previous decision by a single-judge bench, positioning SpiceJet to claim a substantial refund based on legal advice," the company said in an exchange filing.

SpiceJet has paid a total of Rs 730 crore, comprising Rs 580 Crore in principal along with an additional Rs 150 crore towards interest to Maran and KAL Airways. With the setting aside of the impugned order, SpiceJet is set to receive a refund of Rs 450
Crore.

In its ruling, the Division Bench held that the Single Judge had erred in dismissing the Section 34 petitions of Ajay Singh and SpiceJet without due consideration of the claims of patent illegality and the order of refund passed against SpiceJet despite admitted breaches on the part of KAL Airways and Kalanithi Maran.

The Court has also noted that interest amounting to penal interest had been charged despite SpiceJet not being in any breach of the Share Purchase Agreement. These facts not being considered by the single judge, the appeals of Ajay Singh and SpiceJet have been allowed, and the impugned judgment dated July 31, 2023, has been set aside.