Spice Jet to reclaim funds from KAL Airways after HC ruling
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New Delhi: Following the Delhi High Court ruling on the dispute between SpiceJet and its promoter Maran and KAL Airways over a share transfer agreement, SpiceJet has announced its intention to seek a refund of Rs 450 crore from former promoter Kalanithi Maran and his company, KAL Airways.
A division bench’s order overturned a previous single-judge order in the prolonged share transfer dispute. SpiceJet and its promoter, Ajay Singh, have been embroiled in the case against Maran and KAL Airways over issues stemming from a share transfer agreement. On May 17, the division bench ruled in favour of SpiceJet, allowing the airline to reclaim a substantial portion of the Rs 730 crore previously paid. This sum included Rs 580 crore in principal and an additional Rs 150 crore in interest.
The single-judge bench had allegedly dismissed their Section 34 petitions without addressing key claims of patent illegality and unjustified interest charges. The division bench found merit in these challenges, citing that the single judge had not given due consideration to these critical issues. "The single judge had erred in dismissing the Section 34 petitions of Ajay Singh and SpiceJet without adequately considering the claims of patent illegality and the refund order passed against SpiceJet," the court noted.
Furthermore, it was said that penal interest had been charged despite SpiceJet not being in breach of the Share Purchase Agreement. The reversal of the July 31, 2023, judgment positions SpiceJet to recover Rs 450 crore, offering a significant financial reprieve for the airline.
Source: IANS