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Maran row: SpiceJet deposits Rs 250 crore with HC registrar

Press Trust of India  |  Mumbai 

today said it has deposited Rs 250 crore with the Registrar General of High of in connection with a share transfer dispute with its previous owner Kalanithi Maran and his KAL Airways.

The Singh-promoted budget carrier said it has done so in compliance with orders.

"This refers to judgement and final order dated July 29, 2016 passed by the learned single judge of the hon'ble High of .. Further modified by the order of the hon'ble Supreme Court of dated July 31, 2017... Inter- alia directing the company to deposit Rs 250 crore to the Registrar General of High Court of on or before September 14, 2017.

"In this regard, we wish to inform you the company has deposited Rs 250 crore with the Registrar General of High Court of Delhi on September 14, 2017, in compliance with the above said orders," said in a regulatory filing.

The Supreme Court on July 28 dismissed the appeals of challenging the Delhi High Court verdict asking it to deposit Rs 579 crore in connection with a share transfer dispute with its previous owner Kalanithi Maran.

A division bench of the HC had asked SpiceJet to deposit the money, saying, "there is nothing worthwhile" in the petitions to show its finances were precarious or that its cash position was so stretched that it could not comply with its single judge order asking it to deposit the amount.

However, the bench had provided it some relief by allowing it to deposit the amount in two parts. It had said part of the amount could be secured by a cash deposit of Rs 250 crore and the balance by a bank guarantee of Rs 329 crore.

"With the deposit of above said Rs 250 crore and furnishing of bank guarantee of Rs 329 crore on August 14, 2017 with the Registrar General of High Court of Delhi, the company has complied with the above said orders," the airline informed the market regulator.

SpiceJet and Singh had challenged before the division bench the July 2016 interim order passed by a single judge alleging the court did not have the jurisdiction over the matter.

The single judge's order had come on a civil suit by Sun TV group's chief Kalanithi Maran and his Kal Airways.

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

Maran and Kal Airways had alleged before the single judge that despite giving Rs 579 crore to SpiceJet, the carrier had failed to issue them the warrants or allot tranche one and two of convertible redeemable preference shares and that the amount was not utilised for paying statutory dues for which they were also facing prosecution.

SpiceJet, in the BSE filing today, said, "Accordingly, the interim order dated May 18, 2016 and May 27, 2016 restraining the company and Singh (promoter) from allotting/ transferring/issuing/alienating and/or creating any third party interest and/or encumbrance on any shares of Singh, stands vacated....

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, September 14 2017. 22:42 IST