Gurugram, May 22, 2024: The Delhi High Court’s Division Bench has ruled in favor of SpiceJet and its promoter, Ajay Singh, in the protracted share transfer case against former promoter Kalanithi Maran and his firm, KAL Airways. The court’s decision, dated May 17, overturns a previous ruling by a single-judge bench and positions SpiceJet to reclaim a significant portion of the INR 730 Crores it had previously paid.
Following the court’s ruling, SpiceJet is set to seek a refund of INR 450 Crores from the total amount it had paid to Maran and KAL Airways. This sum includes INR 580 Crores in principal and an additional INR 150 Crores towards interest. The High Court’s decision nullifies the prior order, enabling SpiceJet to pursue the substantial refund based on legal advice.
The appeal filed by SpiceJet and Ajay Singh contested several key issues related to the refund and the justification of interest. The Division Bench found merit in these challenges, stating that the single-judge bench had not adequately addressed these concerns in its previous order from July 31, 2023.
In its ruling, the Division Bench highlighted errors made by the single judge in dismissing the Section 34 petitions of Ajay Singh and SpiceJet. The court noted that the single judge had overlooked claims of patent illegality and had issued a refund order against SpiceJet despite admitted breaches by KAL Airways and Kalanithi Maran. Additionally, the court found that penal interest had been unjustly charged to SpiceJet, despite the airline not being in breach of the Share Purchase Agreement.
The Division Bench’s decision to set aside the judgment from July 31, 2023, allows SpiceJet to proceed with reclaiming INR 450 Crores and rectifies the previous judicial oversight.
About SpiceJet
SpiceJet is recognized as India’s favorite airline, making air travel affordable for a larger number of Indians. As an IATA-IOSA certified airline, SpiceJet operates a fleet of Boeing 737s and Q-400s and is a leading player in India’s regional aviation sector. The airline runs numerous daily flights under the UDAN or Regional Connectivity Scheme, with a majority of its fleet featuring SpiceMax, known for offering the most spacious economy class seating in India.
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