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Synopsis

The Delhi High Court has ordered SpiceJet airline to pay Rs 380 crore to Kalanithi Maran of KAL Airways, while seeking an affidavit of its assets within four weeks.

In a setback to SpiceJet, a single judge bench of Justice Yogesh Khanna passed the order on May 29.

“Since the judgment debtor had failed to pay an amount of Rs 75.00 crores to decree holder, hence in terms of para 15(ii) of the order dated 13.02.2023 of the Supreme Court, there is no other alternative except to call upon the judgment debtors to deposit the entire outstanding amount qua interest forthwith, thus is so directed. Affidavit of assets be also filed within four weeks from today,” the bench said.

It noted that the Supreme Court by its order on February 13 had directed SpiceJet to pay Rs 75 crore within three months to KAL Airways, controlled by Kalanithi Maran, the former promoter of SpiceJet.

However, the airline failed to do so.

"The senior counsel for the decree holder submits an amount of Rs 75.00 crores has not been deposited as yet and hence the interest liability which was Rs 362.49 crores as noted in para 11 of the order dated 13.02.2023 has since increased to Rs 380 crores and thus the decree holder insists for compliance of order dated 13.02.2023,” the court said.

Notably, a long-running legal battle between the Maran family and the current promoter, Ajay Singh, and SpiceJet, had ensued over contractual obligations. 

The high court, in its order, also noted that the counsel for the SpiceJet, however, submitted they have already paid the principal amount of Rs 579.08 crores and now the payment only qua interest is pending and they have already moved an application before the Supreme Court for extension of time period for further three months to the judgment debtor to make payment of Rs 75.00 crores to the decree-holder.

"The arguments of the decree holder appear plausible as admittedly there is no modification of the February 13 order passed by the apex court, hence it needs to be followed," the bench said.

Senior advocate Maninder Singh for Kal Airways contended that SpiceJet had failed to comply with the order dated November 4, 2020, issued by the Delhi High Court, by not filing the affidavit of assets.

Additionally, SpiceJet was directed to pay an amount of Rs 242,93,70,845.56 within three weeks from the order passed by Delhi High Court on September 2, 2020.

SpiceJet sought to modify this order, but their application was rejected. They then challenged these orders before the apex court, which directed them, through an order dated 13th February 2023, to encash the bank guarantee and pay the specified amount directly to Kal Airways. Despite the intervention of the apex court, SpiceJet was also required to pay an additional amount of Rs 75 crores to Kal Airways within three months, representing the liability for interest, they said.

They also said that the timeline for the payment of the interest amount had already been determined by the Supreme Court, and the single judge had no authority to extend the time limit.

Case Title: Kal Airways Pvt. Ltd. v. M/S Spicejet Ltd. & Ors (another petition)