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Share transfer case: SC dismisses Spicejet’s plea, asks to pay Rs579 crore

New Delhi : The Supreme Court on Friday rejected SpiceJet’s appeal and directed the company to pay a sum of Rs. 579 crore over a share transfer dispute arising out of a change in the airline’s ownership in 2015.
The apex court also refused to stay on Delhi High Court’s order.

Earlier this month, the Delhi High Court dismissed SpiceJet’s plea against a single judge order which had directed it to deposit Rs. 579 crore in connection with a share transfer dispute with previous owner Kalanithi Maran.

The court has ordered that Rs. 250 crores be paid by cash deposit till August 31 while a bank guarantee worth Rs. 229 crores will have to be submitted by July 31. (These figures don’t add up to Rs. 579 crore, the total amount, and will certainly change in the written order. But for now, this information is the one dictated by the judge pronouncing the verdict).

In May, a division bench of the High Court had reserved its decision on the pleas of SpiceJet and its co-founder Ajay Singh, challenging the order which came on a civil suit by Sun Group chief Kalanithi Maran and his Kal Airways.

In their suit, Maran and his airline had sought issuance of stock warrants in SpiceJet to them as per a Sale Purchase Agreement (SPA) of 2015 which led to transfer of ownership of the budget carrier to Singh. (ANI)