SpiceJet vs Kalanithi Maran: Delhi HC asks airline, its CMD to pay Rs 100 cr to Kal Airways

New Delhi: The Delhi High Court on Thursday asked low-cost airline SpiceJet and its Chairman and Managing Director (CMD) to pay Rs 100 crore to Kal Airways and its promoter Kalanithi Maran by September 10, failing which the court may consider the attachment of their properties.

Appearing for Maran and Kal Airways, Senior Advocate Maninder Sing submitted that the judgement Debtor SpiceJet and CMD, had to file the affidavit of assets and weekly collection within one week which they have failed to file on time and the same has not been filed in a format mandated by this court.

On August 9, the court had issued notice on Kal Airways and Maran's application seeking 50 per cent of the daily revenue collection of SpiceJet to be paid to them on a weekly basis.

During the hearing on Thursday, Singh further submitted that the order dated February 13 and July 7, passed by the Supreme Court is pre-emptive, conditional and self-operative which has not been complied with till date.

Additionally, he submitted that the affidavit filed by the CMD has been filed under sealed cover which has not been served to the decree holders -- Kal Airways and Maran.

On the other hand, Senior Advocate Amit Sibal submitted that the amount calculated by them stood up to Rs 279 crore and not Rs 397 crore as argued by Advocate Singh.

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He further made an offer to deposit Rs 75 crore within 10 days to which, Advocate Singh objected and said that they had to pay this amount in April but has not paid till date.

"The court in consultation and with the consent of SpiceJet directed the Company to pay Rs 100 crore by 10 September, 2023. SpiceJet will honour this court's order and make the specified payment within the prescribed timeframe," SpiceJet spokesperson said.

The court has listed the matter for hearing on September 11.

On August 9, as Justice Yogesh Khanna directed the airline and the CMD to file an affidavit disclosing their assets and their revenue collection within one weeks' time, he had mandated Singh's presence on the next date of hearing.

Considering the willful default and lackadaisical attitude of SpiceJet and Singh, the judge had reiterated his July 24 order and advanced the hearing.

Advocate Singh had submitted that in view of the willful defaults at every stage and laid back attitude it is just and fair that Spicejet and Singh should deposit 393 crores Approx. and file their affidavit of assets before the next date of hearing.

The counsel sought directions from the court for his client that 50 per cent of the daily revenue collected by the judgement debtors be paid to decree holders on weekly basis, the affidavit of disclosure of assets be filed at the earliest, the statement of accounts be filed within one day in court and the main prayer i.e. entire arbitral awarded amount be paid to the decree holders.

On the other hand, Senior Advocate Sandeep Sethi had admitted that the orders had not been complied with by Spicejet.

However, he had said that this is a fresh application listed on Wednesday and submitted that since the matter is already directed to be listed on September 5, the matter may be heard on that date as the judgment debtor is bound by court orders.

He had also argued that there is no reason for allowing early hearing at this stage.

To this, the judge had then observed that the decree-holder is not left with any other option but to move an early hearing application as the judgment debtor is not complying with the orders passed by the courts and the judgement debtor should have filed its affidavit of disclosure of assets till date.

On July 24, the high court issued notice to SpiceJet and Singh seeking an urgent hearing of its enforcement petition in a case where the former is to pay approximately Rs 390 crore to it towards its interest liability under the arbitral award.

Allowing the application, Justice Khanna had directed SpiceJet and its CMD to file an affidavit disclosing all their assets before the next date of hearing, September 5, and also mandated the physical presence of Singh before it.

On Thursday, Senior advocate Amit Sibal appeared on behalf of SpiceJet Ltd and Ajay Singh.

Senior advocate Maninder Singh, instructed by senior partner Nandini Gore, principal associate Sonia Nigam, associate Yash Dubey and associate advocate Akarsh Sharma from Karanjawala & Co. appeared on behalf of Kal Airways Pvt Ltd and Kalanithi Maran.

With agency inputs

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