Maran loses Rs 1323 crore arbitration against Spicejet, but gets Rs 571 cr refund

By NT Bureau Published on Jul 23, 2018 02:49 PM IST

Chennai: An arbitration tribunal has rejected the Rs 1,323-crore damages claim from Spicejet and a bid to take control of the airline by its previous owner Kalanithi Maran and his company Kal Airways, after a bitter share transfer dispute.

The Delhi-based low-cost carrier has informed the exchanges that on 20 July, an arbitration tribunal rejected Maran's claim of damages of Rs 1,323 crore for not issuing convertible warrants and preference shares to him and Kal Airways.

The case dates back to January 2015, when Singh, who owned the airline earlier bought it back from Maran after being grounded for months.

The tribunal consisted of three retired judges from the Supreme Court, Arijit Pasayat, Hemant Laxman Gokhale and KSP Radhakrishnan.  The arbitration proceedings were concluded in April 2018 and the arbitral award was unanimous.

While the tribunal asked Maran to pay Singh and the airline Rs 29 crore in penal interest, Singh was asked to refund Rs 579 crore plus interest to Maran.

The tribunal, created in end-2016 on the orders of the Delhi High Court to adjudicate the share transfer dispute, held that there was no breach of a share sale and purchase agreement reached between Maran and current promoter Ajay Singh in late January 2015.

Spicejet said there is no monetary impact from the verdict as most of the refund of Rs 370 crore already deposited in an escrow account created by the Delhi HC.  Additionally, the tribunal has allowed a counterclaim of Rs 29 crore.

On the dispute related to issue of convertible warrants and preferential shares, the airline said, "The tribunal has held that the claimants were to bring in Rs 100 crore required for issuance of CRPS aggregating to Rs 370 crore, and the same has not been deposited by them in the manner provided under the agreement."