2 days ago
SpiceJet Seeks More Time to Deposit ₹50 Crore
SpiceJet is involved in a money dispute with Kalanithi Maran and Kal Airways.
A court previously told SpiceJet and Ajay Singh to deposit about ₹144 crore.
SpiceJet promised to pay ₹50 crore first.
The airline says it used emergency government funding to keep operating.
It was expecting another government funding payment, but that money had not arrived.
Because of this, SpiceJet asked for four more weeks to make the first payment.
It also asked for more time to make the later ₹94.50 crore payment.
The Delhi High Court will consider the request on September 21.
SpiceJet and promoter Ajay Singh asked the Delhi High Court for more time to deposit ₹50 crore.
The airline said an expected second tranche of government emergency credit support had not materialised.
The court listed the application for September 21 without passing an order immediately.
SpiceJet had earlier agreed to deposit ₹50 crore first and ₹94.50 crore within the following 90 days.
The dispute concerns an arbitral award linked to shares and warrants transferred from Kalanithi Maran and Kal Airways.
- Who
- SpiceJet, promoter Ajay Singh, Kalanithi Maran, and Kal Airways.
- What
- SpiceJet and Singh requested extensions to deposit ₹50 crore and subsequently ₹94.50 crore in a legal dispute.
- Where
- The Delhi High Court registry and proceedings before the Delhi High Court.
- When
- The application was heard on Monday and listed for September 21; the first payment had been due August 27.
- Why
- SpiceJet said an expected second tranche of government emergency credit support had not yet materialised and that available funds were used for operations.
SpiceJet and Ajay Singh
Kalanithi Maran and Kal Airways
Payment deadline
SpiceJet and Ajay Singh
SpiceJet and Singh asked for four additional weeks from August 27 to deposit the first ₹50 crore, followed by a 45-day extension for the ₹94.50 crore tranche.
Kalanithi Maran and Kal Airways
Maran and Kal Airways are pursuing the court-directed deposits arising from the arbitral award; their counsel appeared at the hearing, although the article does not state their specific response to the extension request.
Underlying financial dispute
SpiceJet and Ajay Singh
SpiceJet and Singh challenged the prior orders and sought more time to comply with the deposit directions while managing the airline’s operations.
Kalanithi Maran and Kal Airways
The dispute arises from claims concerning warrants that were not issued after Maran and Kal Airways transferred their SpiceJet stake to Singh.
Key facts
- First deposit requested
- ₹50 crore
- Subsequent deposit
- ₹94.50 crore
- Total amount previously directed
- Approximately ₹144 crore
- Admitted liability cited
- ₹194 crore
- Next hearing
- September 21
- Government support
- SpiceJet said it received a first tranche of emergency credit support in June and was awaiting a second tranche.
- Underlying dispute
- The non-issuance of warrants to Maran after ownership transferred to Ajay Singh.
Quotes
Mukul Rohatgi
Senior advocate representing SpiceJet in the Delhi High Court
“I could have paid ₹50 crore as per the undertaking given to the court but the second tranche has not materialised as yet.”
CNBC TV 18
Sources
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