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Synopsis

The Supreme Court on Monday refused to grant further time to Kalanithi Maran and SpiceJet to settle their share transfer dispute. Court asked the parties not to practice delay tactics.

A bench of the Chief Justice of India NV Ramana, Justice Krishna Murari, and Justice Hima Kohli was hearing an application filed by decree holders seeking vacation of the stay imposed by the top court on the operation of the Delhi High Court's order in the plea by Spicejet.

SpiceJet had challenged the High Court order directing it to deposit money to secure the decree holders to the extent of interest granted to them under an arbitral award in the share transfer issue among Spicejet's former promoter Kalanithi Maran and Kal Airways Pvt Ltd. 

The counsel appearing for both the parties had submitted that they are in the middle of the settlement and requested the bench to allow more time.

The bench said, "How many times would you ask for this?". Court listed the matter for August 5, 2022, for a final hearing.

Earlier, on March 31, the top court granted one more opportunity to Kalanithi Maran and Spice Jet to settle their dispute. Later, on several occasions, the court had allowed adjournments on the ground of the non-availability of the senior counsel.

Furthermore, 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 had, however, insisted that the parties should try to end the dispute through talks.

Background

The matter pertains to the issue of a one-time settlement of the dispute over the share transfer issue among Spicejet, its former promoter Kalinath Maran, and Kal Airways Pvt Ltd.

Earlier, Kal Airways had submitted that High Court has asked 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.

It was also submitted 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, Spicejet had submitted that the petitioners have already paid Rs. 308 crores to the respondent.

"We have already paid Rs. 308 crores, Rs. 270 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," Spicejet added.

However, the High Court had asked the parties to resolve the dispute among themselves.

Case title: SpiceJet Ltd Vs Kalanithi Maran