SpiceJet refutes claims by KAL Airways, Kalanithi Maran seeking damages of Rs 1,323 crore | Business News
Crisis-hit SpiceJet Tuesday rejected the claims made by KAL Airways and Kalanithi Maran, seeking damages of Rs 1,323 crore from SpiceJet and its chief Ajay Singh in the ongoing dispute between the two sides. A division bench of the Delhi High Court on May 17, had set aside a single-judge bench order that had upheld an arbitral award against the airline and its promoter Ajay Singh, thus asking for a refund of Rs 579 crore plus interest.
SpiceJet termed the monetary claims by the duo as “legally untenable”, citing its rejection by the Arbitral Tribunal and the Delhi High Court. It further accused KAL Airways and Kalanithi Maran of attempting to sensationalise the issue and misleading the public.
“KAL Airways and Kalanithi Maran initially sought damages of more than Rs.1300 crore during the arbitration proceedings. This claim was thoroughly examined and subsequently rejected by a panel of three retired Supreme Court judges,” the airline said in a statement.
“Following this, KAL Airways and Kalanithi Maran appealed to the single-judge Bench of the Delhi High Court, seeking the same amount in damages, which was again rejected by the court.”
Earlier on Monday, KAL Airways and Kalanithi Maran said they would challenge the Delhi High Court order after the court rejected its claims.
“In parallel, they are also seeking damages in excess of Rs 1,323 crore, as determined by FTI Consulting LLP, United Kingdom, a globally renowned firm that specialises in estimation of losses arising out of breach of contractual commitments,” KAL Airways said in a statement on Monday.
Further, it said the claim for damages “has always remained an integral part of their quest for justice”. The dispute arose due to a breach of trust by SpiceJet and has caused “enormous hardship to both KAL Airways and Kalanithi Maran for more than a decade,” they added in their statement.
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The case dispute began in 2015 when Singh purchased the airline back from Maran after it was grounded for months due to a resource crunch. As part of the agreement, both KAL Airways and Maran had claimed to have paid SpiceJet Rs 679 crore for issuing warrants and preference shares.
However, Maran approached the Delhi High Court in 2017, alleging SpiceJet of not fulfilling of promise of issuing convertible warrants and preference shares.
-With inputs from PTI
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