SpiceJet to seek ₹450 cr refund from Maran

on Wednesday, May 22, following an order from the Delhi High Court, the airline giant SpiceJet announced that it would seek a return of ₹450 crore out of the ₹730 crore paid to the airline’s former promoter Kalanithi Maran and his firm KAL Airways. In response, KAL Airways stated that no such claim exists because the division bench has not issued any directives about reimbursement of the money previously paid. 

On May 17, a division bench of the court overturned a single bench ruling that had upheld an arbitral award demanding that the airline and its promoter, Ajay Singh, reimburse Maran with interest in the amount of ₹579 crore. The bench granted the airline’s and Singh’s appeals to overturn the single judge’s decision, and the case was remanded to the relevant court so that the petitions contesting the arbitral judgment may be reviewed again. Given these circumstances, the airline declared in a regulatory filing that it would pursue a refund of the money it had paid to Maran and KAL Airways.

KAL Airways, in its official statement, clarified that the division bench did not state that the award was wrong. Instead, it requested a detailed elaboration on certain issues. It suggested that the single judge consider these observations when reassessing the award’s validity. The division bench did not make any observations or findings regarding the refund of the money already paid to KAL Airways by Spicejet. Therefore, any claims seeking a refund of the money already paid to KAL Airways and Maran under the directions of the Hon’ble Supreme Court and the Hon’ble High Court do not arise. Furthermore, it is blatantly misleading to the public and designed to raise controversy that the airline is entitled to a refund.

The case started in January 2015 when Ajay Singh, the former owner of SpiceJet, took back the company from Maran after it had been grounded for months due to a lack of resources. The panel ordered Maran to pay ₹29 crore in penal interest to Singh and the airline, while Singh was required to reimburse Maran for ₹579 crore plus interest. The Tribunal stated that there had been no violation of the terms of the share buy-sell agreement between Maran and Singh in late 2015 and directed the Delhi High Court to resolve the share transfer dispute.

In February 2015, Maran and his company gave up their 58.46% ownership and ₹1,500 crore in debt obligations. In the agreement, Maran and Kal Airways claimed to have paid Spicejet Rs 679 crore for the issuance of preference shares and warrants. However, in 2017, Maran filed a petition in the Delhi High Court, alleging that SpiceJet had not repaid the funds or issued convertible warrants and preference shares.