The Supreme Court, while giving relief to SpiceJet Airlines in a cash crisis, has stayed the order of the Delhi High Court which directed SpiceJet to deposit Rs 243 crore.
The High Court gave this direction on September 2 in connection with the ongoing share transfer dispute with Spice Jet's former promoter Kalanithi Maran and his company KAL Airways.
A three-member bench headed by Chief Justice SA Bobde, while accepting Spice Jet's request, stayed the High Court order for the time being.
The bench, which also has the presence of Justice AS Bopanna and Justice V. Ramasubramaniam, has also issued notice to Maran and his company on the plea of SpiceJet in the hearing through video conferencing on Friday. They have also asked them to file their reply in four weeks. After hearing both the sides, the bench stayed the High Court order till further orders.
On September 2, the High Court, while hearing Maran's plea, had asked SpiceJet to deposit interest of Rs 243 crore within six weeks. This deadline has expired on 14 October.
Earlier, Maran had approached Delhi High Court on October 22, pleading to attach the shareholding of SpiceJet promoter Ajay Singh. Also, the management of the airlines had sought permission from the High Court to take over.
This is the whole controversy
In December 2014, SpiceJet, which was in debt, ceased operations for a day due to a cash crunch. Thereafter controversy erupted over co-founder Ajay Singh starting taking control of SpiceJet in February 2015.
Maran and his KAL Airways transferred 350.4 million shares (58.46 percent stake) in SpiceJet to Ajay Singh for just Rs 2. After this, Maran and KAL Airways moved the High Court for not getting 18 crores to redeem warrants for the transfer of equity shares.
On 29 July 2016, the High Court asked SpiceJet and Ajay Singh to deposit Rs 579 crore in its registry. In 2017, the Supreme Court dismissed SpiceJet's appeal against this order. On July 20, 2018, the Arbitral Tribunal rejected Maran's claim for loss of Rs 1323 crore but ordered a refund of Rs 579 crore and interest.
Maran had appealed in the High Court against this decision of the Tribunal, on which the High Court on September 2 had directed SpiceJet and Ajay Singh to deposit Rs 243 crore as the interest of Rs 579 crore.