In a jolt to low-cost carrier SpiceJet in a share transfer dispute, the Supreme Court refused to extend the deadline for it to pay Rs 578 crore to media baron Kalanithi Maran and his KAL Airways under an arbitration award, saying it was a “luxury”. ‘ (abuse of legal process) are the cases. Refusing to extend the time, the Delhi High Court had on June 1 directed SpiceJet to immediately deposit Rs 75 crore, which was to be paid to Maran and his airways company as interest on the arbitration amount.
Strong arguments of Mukul Rohatgi were not accepted
Earlier, the Supreme Court had ordered that the bank guarantee of Rs 270 crore given by SpiceJet to Maran and his company, if SpiceJet Airlines failed to pay Rs 75 crore of interest on the amount fixed under the arbitration award by May 13 must be redeemed immediately. A bench of Chief Justice DY Chandrachud and Justice PS Narasimha today did not accept the forceful arguments of senior advocate Mukul Rohatgi, appearing for SpiceJet, and refused to extend the time, saying that the award-awarded amount has now become executable. .
Payment not made despite order placed
Justice Chandrachud said, the whole team of lawyers is involved in all this and you know that this is only to delay the compliance of the orders of the court. I personally would not accept it. Court’s order has to be followed and now, they (Delhi High Court) will implement the decision. Senior advocate Maninder Singh, appearing for Maran and his KAL Airways, at the outset said that despite the Supreme Court ordering them to pay Rs 75 crore as interest, nothing has been paid and there is no time to pay To be increased
failed to obey orders
Singh, appearing for Karanjawala & Co, said SpiceJet had earlier failed to comply with the high court’s order directing it to file an affidavit disclosing assets. SpiceJet’s lawyer said, seventy-five crore rupees is not a small amount. On this, the bench said, but these are not even small parties. These are all luxury cases. The time cannot be extended any more and the amount decided becomes executable. The case pertains to a dispute arising out of non-issuance of warrants in favor of Maran following the transfer of ownership to the controlling shareholder of SpiceJet. The dispute started in February 2015 between the airline facing financial crisis.
