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A Supreme Court bench headed by Chief Justice of India NV Ramana and consisting of Justices Krishna Murray and  Hima Kohli today granted one more opportunity to Kalanithi Maran and Spice Jet to settle their dispute.

The bench was hearing an application filed by decree holders seeking vacation of the stay, wherein the apex court had stayed the operation of the Delhi High Court's order in the plea by Spicejet challenging the High Court order directing Spicejet to deposit money to secure the decree holders to the extent of interest granted to them under an arbitral award in Share transfer issue among Spicejet's former promoter Kaliithi Maran and Kal Airways Pvt Ltd. 

When the matter came up for hearing today, Mukul Rohatgi, Sr. Adv, submitted that the parties could not reach a settlement in the matter. He submitted that like many other airlines, Spice Jet, is also going through a difficult phase financially since the pandemic began. Rohatgi further submitted that the airlines is struggling now because of this. He further submitted that the airlines is also facing a winding order by Madras High Court, which is before the Supreme Court in appeal

Dushyant Dave, Sr. Adv, appearing for Kalanithi Maran submitted that they are agreeable to Spice Jet paying interest on share transfer over a period of three years.

The court on hearing the submissions of the parties directed SpiceJet to decide on the offer of Kalanithi Maran and inform the court of the outcome on 12th April 2022, when the matter is next listed.

It is to be noted that the court had in February granted time to the parties to settle the matter through talks. However the talks did not result in a settlement and the matter was listed for hearing. The court however insisted that the parties try to end the dispute through talks and listed it today for hearing. 

On a lighter note:

While hearing the matter, the CJI pointed out how air travel has become expensive now a days. He said “A flight from here to Delhi costs Rs.40,000, what is this?” Rohatgi submitted that the increase in cost is not because the airlines inflate it, it is because of the overheads they incur during the pandemic. He further said “I was checking airfares the other day and asked my clients why it is so high.”

CJI at this point remarked “Why are you checking for fares Mr.Rohatgi?” The court burst into laughter.

Background:

Sr. Adv. Maninder Singh appearing for Kal Airways submitted that High Court has asked them (Spicejet) to pay the decretal amount against which Spicejet have deposited only Rs. 270 crores as bank guarantee and now there is a winding-up order passed against Spicejet by the Hon’ble Madras High Court in another case being Credit Suisse AG vs. Spicejet.

He said that in such a change in circumstance, Spicejet should be directed to pay and deposit Rs. 242 crores otherwise the Respondent will have to run from pillar to post. 

Whereas, Sr. Adv. Mukul Rohatgi appearing for Spicejet had stated that the petitioners have already paid Rs. 308 crores to the respondent.

"We have already paid Rs. 308 crores, Rs. 275 crores bank guarantee is already deposited before the Hon’ble Delhi High Court. The Section 34 petition is already pending which may be decided by the Hon’ble High Court and this Court may order to decide that expeditiously," Rohatgi added.

 

Case title: Spice Jet Ltd Vs Kalanithi Maran