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Delhi HC hears BSE submissions on Kalanithi Maran

Maran had demanded that 180 million warrants redeemable as equity shares be transferred to him

Kalanithi Maran

Sayan Ghosal  |  New Delhi 

Can't allow issue of warrants to Kalanithi Maran: BSE to HC

The Delhi High Court heard BSE’s submissions on the Kalanithi Maran–SpiceJet stock warrant case on Tuesday.

Maran and his KAL Airways had filed a suit in the high court earlier this year against SpiceJet Airlines, demanding the conversion and transfer of 180-million redeemable stock warrants into equity shares according to a 2014 resolution, made by the company.

Throughout the course of the hearings, SpiceJet and its owner Ajay Singh have maintained the stance that the stock warrants cannot be converted or transferred until BSE and Securities and Exchange Board of India (Sebi) approvals are made on the issue.

“Sebi puts the ball in BSE’s court. BSE puts the ball in Sebi’s court. And, Ajay Singh puts the ball in both their courts,” KAL Airway’s counsel on Tuesday remarked on the current state of affairs.

In the hearing, Maran and KAL faced a large setback as the counsel for the BSE submitted that according to the existent law, the BSE could not allow the issue in terms of the 2014 resolution, citing various Sebi regulations that do not permit the transfer in the current circumstances.

The BSE also highlighted the material change in the price of the shares in contrast to the 2014 situation and said the transfer that is being sought could only be made on a fresh resolution issued by the company.

The submissions made by BSE were vehemently challenged by Maran’s counsel senior advocate Kapil Sibal who stated that the Sebi regulations, substantiating the BSE’s contentions also provided scope for condonation of irregularities in the interest of commercial propriety.

After hearing the arguments advanced, the court gave Sebi time till May 18 to consider the matter and asked both parties to mull over the possibility of resolving the dispute through an amicable solution. “The matter is over a single question, whether it can be resolved or not. Otherwise, I will decide on merits” the presiding Justice Manmohan Singh said.

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First Published: Wed, May 11 2016. 00:18 IST