SpiceJet says offered to pay Rs 600 cr in cash to Kalanithi Maran & Kal Airways

Domestic carrier SpiceJet on Wednesday said that it has offered to pay Rs 600 crore in cash in the share transfer case with Kalanithi Maran and his firm KAL Airways for a full and final settlement of all disputes after the Supreme Court asked the former promoter of SpiceJet, to consider a settlement offer proposed by the airline.

A SpiceJet spokesperson informed that the offer was made during the hearing in the Supreme Court today, adding that out of the principal amount of Rs 578 crore awarded in arbitration, SpiceJet has already paid Rs 308 crore in cash and deposited a bank guarantee of Rs 270 crore. "The Court has advised the other side to consider the proposal of SpiceJet and has listed the matter on 14 February 2022.," the spokesperson added.

The spokesperson also added that Mukul Rohatgi, Senior Counsel appearing for SpiceJet proposed to pay the bank guarantee equivalent amount of Rs 270 crore in cash and top it up with additional Rs 22 crore aggregating the total payout to Rs 600 crore as full and final settlement of all disputes between the parties. 

Earlier an arbitration tribunal consisting of three retired judges from the Supreme Court, Arijit Pasayat, Hemant Laxman Gokhale and KSP Radhakrishnan in a unanimous decision had rejected the damages claim of Kalanithi Maran and Kal Airways against SpiceJet.

With the airline facing a possible wind-up, Maran sought for the stay to be lifted to secure the decreed amount, the refund amount awarded and interest, from SpiceJet.

Separately, the apex court had late in January granted three weeks' time to SpiceJet to resolve its financial dispute with Swiss firm Credit Suisse AG, and stayed the operation of the Madras High Court verdict permitting winding-up petition and directing the official liquidator to take over the assets of the low-cost airline.

SpiceJet has rushed to the top court against the January 11 order of a division bench of the high court upholding a recent verdict of a single judge bench ordering its winding up and directing the official liquidator attached to the high court to take over the assets.

Credit Suisse AG had moved the single-judge bench of the high court alleging that SpiceJet failed to honour its commitment to pay the bills for over USD 24 million (one million is equal to Rs 10 lakhs) raised by it towards maintenance, repairing, and overhauling of the aircraft engines and components.

(With inputs from Poulomi Saha)