KAL Air, Maran to seek Rs 1,323 crore in damages from SpiceJet, Ajay Singh

The battle between SpiceJet and Kalanithi Maran took a fresh turn on Monday as KAL Airways and Maran said they will seek over Rs 1,323 crore in damages from SpiceJet and its chief Ajay Singh.

This will be in addition to challenging the recent Delhi High Court order, which was in the airline's favour in a protracted share transfer dispute.

A division bench of the high court had overturned a single judge order that had upheld an arbitral award asking SpiceJet and its promoter Ajay Singh to refund Rs 579 crore plus interest to Maran. The division bench had also sent it back to the single judge to rehear the case. 

Following this, Maran and KAL Airways decided to challenge the ruling after consultation with their legal counsel, a statement by the company said on Monday. 

“The decree holders (KAL Airways and Maran) believe that the aforesaid judgment is deeply flawed and warrants further scrutiny,” it said. 

“In parallel, they are also seeking damages in excess of Rs 1,323 crore, as determined by FTI Consulting LLP, United Kingdom, a firm that specialises in estimation of losses arising out of breach of contractual commitments,” it added.

The company and Maran said the claim for damages had originally been presented by KAL Airways and Maran before the arbitral tribunal and “has always remained an integral part of their quest for justice.”

The statement also indicated that the parties will seek a refund of the pending dues to the tune of around Rs 353.50 crore, as part of the execution of the arbitral award. 

“This action is also in full compliance with, and supported by, the orders dated February 13, 2023, and July 7, 2023, passed by the Hon’ble Supreme Court directing that the award in favour of the decree holders is executed in its entirety,” it said.

On May 22, SpiceJet had said it will seek a refund of Rs 450 crore from its former promoter Maran after the high court ruling.

Dismissing SpiceJet's claim, Maran's firm KAL Airways stated that the high court order did not make any observations regarding the refund. And therefore, any claim seeking the return of money “does not arise at all.”

For the last several quarters, SpiceJet has been grappling with a cash crunch amid multiple legal battles over unpaid dues to aircraft lessors, engine lessors, lenders and Maran.

THE STORY SO FAR
 

> The move will be in addition to challenging the Delhi HC order favouring the airline in a protracted share transfer feud
 

> A division bench of the HC overturned an order asking SpiceJet and its promoter Ajay Singh to refund Rs 579 crore plus interest to Maran
 

> Following this, Maran and KAL Airways decided to challenge the ruling, the company statement said
 

> The parties will seek a refund of the pending dues of Rs 353.5 crore
 

> On May 22, SpiceJet had said it will seek a refund of Rs 450 crore from its former promoter Maran