Delhi HC extends SpiceJet's deadline for Rs 1 bn payment to Maran
AVIATION & AIRPORTS

Delhi HC extends SpiceJet's deadline for Rs 1 bn payment to Maran

The Delhi High Court has granted low-cost airline SpiceJet and its Chairman and Managing Director (CMD) Ajay Singh an extension until Tuesday to settle the outstanding amount of a Rs 1 billion arbitral award owed to Kal Airways' promoter, Kalanithi Maran. This decision comes after the court's previous directive on August 24, which had given SpiceJet and Singh until September 10 to make the payment, warning of potential property attachment if they failed to comply.

According to a statement from SpiceJet's spokesperson, "SpiceJet has paid Rs 775 million to Kalanithi Maran and will fulfil the remaining Rs 1 billion payment tomorrow by contributing Rs 225 million as per the Delhi High Court's instructions."

The spokesperson further emphasised SpiceJet's commitment to adhering to all court orders and obligations related to the Credit Suisse case, noting that the airline would make a $1.5 million payment as per the court's directive. To date, SpiceJet has already paid a total of $8 million to Credit Suisse.

During the recent court hearing, Singh's legal representative disclosed that they had already remitted Rs 625 million to Maran and were carrying a Rs 375 million check in his name. However, Maran's counsel argued that SpiceJet had ample time since August 24 to fulfil the payment, and the delay was unwarranted.

Consequently, the court instructed Singh and the airline to settle the remaining amount either by the end of the day or by September 12, with the case scheduled for the next hearing on October 3.

In previous proceedings, senior advocate Maninder Singh, representing Maran and Kal, had asserted that SpiceJet and its CMD were required to submit an affidavit of assets and weekly collection within one week, which they had failed to do in a timely manner and in the court-mandated format.

On August 9, the court had issued notice on Kal Airways and Maran's application, requesting 50% of SpiceJet's daily revenue collection to be paid to them on a weekly basis. Singh had argued that the orders issued by the Supreme Court on February 13 and July 7 had not been complied with.

Amit Sibal, another senior advocate, contended that the amount owed stood at Rs 2.79 billion, rather than the Rs 3.97 billion argued by advocate Singh. He made an offer to deposit Rs 750 million within 10 days, but this was met with objection, as it was originally due in April but remained unpaid.

SpiceJet's spokesperson reiterated the company's commitment to comply with the court's order to pay Rs 1 billion by September 10, 2023. The court has scheduled the next hearing for September 11.

Justice Yogesh Khanna, on August 9, had instructed SpiceJet and Singh to provide an affidavit disclosing their assets and revenue collection within one week and mandated Singh's presence at the next hearing. Given SpiceJet and Singh's apparent willful default and lax attitude, the judge advanced the hearing.

Singh proposed that, due to the defaults and delays, SpiceJet and Singh should deposit Rs 3.93 billion and file their asset disclosure affidavit before the next hearing. He sought court directions for 50% of the daily revenue collected by SpiceJet to be paid to the decree holders on a weekly basis, prompt asset disclosure, same-day filing of account statements in court, and payment of the entire arbitral award amount to the decree holders.

Senior Advocate Sandeep Sethi admitted that SpiceJet had not complied with the orders but argued that the matter was already set for a hearing on September 5, with no reason to expedite it further.

In response, the judge noted that the decree holder had no choice but to seek an early hearing, as the judgment debtor was not complying with court orders, including the timely filing of asset disclosure affidavits.

On July 24, the high court issued notice to SpiceJet and Singh, urging an urgent hearing of its enforcement petition regarding a case where SpiceJet owed approximately Rs 3.9 billion for interest liability under the arbitral award. Justice Khanna approved the application, directing SpiceJet and Singh to file an affidavit disclosing all their assets before the next hearing on September 5, and mandating Singh's physical presence.

The 14th RAHSTA Expo, part of the India Construction Festival, will be held on October 9 and 10, 2024, at the Jio Convention Centre in Mumbai. For more details, visit: https://rahstaexpo.com

The Delhi High Court has granted low-cost airline SpiceJet and its Chairman and Managing Director (CMD) Ajay Singh an extension until Tuesday to settle the outstanding amount of a Rs 1 billion arbitral award owed to Kal Airways' promoter, Kalanithi Maran. This decision comes after the court's previous directive on August 24, which had given SpiceJet and Singh until September 10 to make the payment, warning of potential property attachment if they failed to comply.According to a statement from SpiceJet's spokesperson, SpiceJet has paid Rs 775 million to Kalanithi Maran and will fulfil the remaining Rs 1 billion payment tomorrow by contributing Rs 225 million as per the Delhi High Court's instructions.The spokesperson further emphasised SpiceJet's commitment to adhering to all court orders and obligations related to the Credit Suisse case, noting that the airline would make a $1.5 million payment as per the court's directive. To date, SpiceJet has already paid a total of $8 million to Credit Suisse.During the recent court hearing, Singh's legal representative disclosed that they had already remitted Rs 625 million to Maran and were carrying a Rs 375 million check in his name. However, Maran's counsel argued that SpiceJet had ample time since August 24 to fulfil the payment, and the delay was unwarranted.Consequently, the court instructed Singh and the airline to settle the remaining amount either by the end of the day or by September 12, with the case scheduled for the next hearing on October 3.In previous proceedings, senior advocate Maninder Singh, representing Maran and Kal, had asserted that SpiceJet and its CMD were required to submit an affidavit of assets and weekly collection within one week, which they had failed to do in a timely manner and in the court-mandated format.On August 9, the court had issued notice on Kal Airways and Maran's application, requesting 50% of SpiceJet's daily revenue collection to be paid to them on a weekly basis. Singh had argued that the orders issued by the Supreme Court on February 13 and July 7 had not been complied with.Amit Sibal, another senior advocate, contended that the amount owed stood at Rs 2.79 billion, rather than the Rs 3.97 billion argued by advocate Singh. He made an offer to deposit Rs 750 million within 10 days, but this was met with objection, as it was originally due in April but remained unpaid.SpiceJet's spokesperson reiterated the company's commitment to comply with the court's order to pay Rs 1 billion by September 10, 2023. The court has scheduled the next hearing for September 11.Justice Yogesh Khanna, on August 9, had instructed SpiceJet and Singh to provide an affidavit disclosing their assets and revenue collection within one week and mandated Singh's presence at the next hearing. Given SpiceJet and Singh's apparent willful default and lax attitude, the judge advanced the hearing.Singh proposed that, due to the defaults and delays, SpiceJet and Singh should deposit Rs 3.93 billion and file their asset disclosure affidavit before the next hearing. He sought court directions for 50% of the daily revenue collected by SpiceJet to be paid to the decree holders on a weekly basis, prompt asset disclosure, same-day filing of account statements in court, and payment of the entire arbitral award amount to the decree holders.Senior Advocate Sandeep Sethi admitted that SpiceJet had not complied with the orders but argued that the matter was already set for a hearing on September 5, with no reason to expedite it further.In response, the judge noted that the decree holder had no choice but to seek an early hearing, as the judgment debtor was not complying with court orders, including the timely filing of asset disclosure affidavits.On July 24, the high court issued notice to SpiceJet and Singh, urging an urgent hearing of its enforcement petition regarding a case where SpiceJet owed approximately Rs 3.9 billion for interest liability under the arbitral award. Justice Khanna approved the application, directing SpiceJet and Singh to file an affidavit disclosing all their assets before the next hearing on September 5, and mandating Singh's physical presence.

Next Story
Infrastructure Transport

Govt announces Rs 20 Bn bonus for railway employees

Union Minister Ashwini Vaishnaw announced on Thursday the Cabinet has approved a Productivity Linked Bonus of Rs 20.29 billion for Railway employees, benefiting 11,72,240 workers in recognition of their good performance. He also addressed concerns about recruitment, stating that the process for filling 58,642 vacancies is underway, countering opposition claims that present misleadingly small figures regarding employment in the Railways. Union Minister Ashwini Vaishnaw said, Productivity Linked Bonus for Railway employees of Rs 20.29 billion has been approved by the cabinet for the good perfo..

Next Story
Infrastructure Transport

Prabhakar seeks new railway line between Belagavi and Karad

KLES chairperson and former Rajya Sabha member Prabhakar Kore urged the Union minister of road transport and highways Nitin Gadkari and Union consumer affairs minister Pralhad Joshi, who were on the dais, to get the Belagavi-Nippani-Kolhapur-Karad new railway line sanctioned between Karnataka and Maharashtra by exerting pressure on the railway minister. He was speaking after accepting an honour from the citizens of Nippani town for his contribution to the education, health, and agriculture sectors over the past 40 years. VSM's Somashekhar Kothiwale Institute of Technology organised the progra..

Next Story
Infrastructure Transport

Rs 147 Bn allotted to Madhya Pradesh rail development

A sum of Rs 147 billion has been allocated to Madhya Pradesh for development of railways, Union Minister Ashwini Vaishnaw said .The railway minister virtually flagged off a train service from Jaura to Kailaras in Morena district after the route was converted from narrow gauge to broad gauge. Union Communications Minister and MP speaker Narendra Tomar too showed green flags when the train departed from Jaura station. Rs 147 billion have been allocated for the development of railways in MP. Right now, five Vande Bharat trains are running in Madhya Pradesh. In the last 10 years, 222 kilometres ..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000