Court rules in favour of Spicejet

In the dispute between KAL Airways, Kalanithi Maran versus Spicejet, Ajay Singh, the arbitration tribunal rejected Spicejet's ex-promoter's Rs. 1,323 crore claim citing breach of the terms of the share purchase agreement.

In 2015, Kalanithi Maran had sold 58.46 per cent stake in SpiceJet to the airlines' current promoter and chairman, Ajay Singh, for a nominal amount of ₹2, on the back of financial losses. Post the deal, the two parties had been locked in litigation as Maran accused SpiceJet of breach of agreement for non-issuance of warrants /shares. KAL Airways and Maran alleged that they had paid the airline Rs. 679 crore for the same.

The arbitration tribunal ruled in favour of Spicejet and dismissed the Rs. 1,323 crore damage claim, however, it granted Maran a refund of Rs. 308 crore, the amount paid to subscribe warrants/preference shares of Spicejet, alongwith an interest of 12 per cent per annum for 30 months. This ruling will have no effect on the airline's balance sheet as the amount is already deposited by Spicejet in the Delhi High Court's escrow account.

During Monday's trading session, the stock of Spicejet gained more than 5 per cent. The stock closed at Rs. 109.70 per share, up by 4.63 per cent, which was close to its day's low. It hit an intraday high of Rs. 114.80 per share on BSE.