KAL Airways tells Supreme Court of rejecting SpiceJet's settlement offer

KAL Airways tells Supreme Court of rejecting SpiceJet's settlement offer

The apex court will hear the share transfer dispute case on March 2

The Supreme Court has been informed by KAL Airways that it has refused to accept SpiceJet's offer for full settlement of the share transfer dispute between the airline and its former promoter Kalanithi Maran, and his firm KAL Airways.

A bench comprising Chief Justice NV Ramana, Justice AS Bopanna and Justice Hima Kohli had recently asked KAL Airways to consider and revert to SpiceJet's proposal.

SpiceJet had offered to give Rs.300 crores as the final settlement of the dispute and ensure no further litigation.

Appearing on behalf of KAL Airways, senior advocate Maninder Singh informed the bench that they had decided not to accept the SpiceJet offer, as the total amount owed by them was over Rs.920 crores.

Meanwhile, SpiceJet representative, senior advocate Mukul Rohatgi requested the court to hear the case in two weeks or it could direct the Delhi High Court to hear the Section 34 petition expeditiously.

The bench, therefore, decided to hear the case on March 2.

The bench was hearing an application filed by KAL Airways seeking vacation of the stay granted by the Supreme Court on the high court's 2020 order directing SpiceJet to deposit Rs.243 crore in their dispute.

The application was filed in SpiceJet's special leave petition, challenging the orders passed by the high court in a share transfer dispute between Maran and the airlines.

Through impugned orders, the high court had directed the airlines and its promoter, Ajay Singh, to deposit Rs.243 crore as interest payable on Rs.579 crore under the 2018 arbitration award. SpiceJet was directed to deposit the amount with the court registry.

In November 2020, the apex court had stayed the high court order.