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BusinessSpiceJet rebuts Rs 1,300 crore damage claims by KAL Airways, Kalanithi Maran

SpiceJet rebuts Rs 1,300 crore damage claims by KAL Airways, Kalanithi Maran

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In a new development in the ongoing legal battle between carrier SpiceJet and its former owners KAL Airways and Kalanithi Maran, the airline has rejected claims seeking damages of over Rs. 1,300 crore. SpiceJet termed the monetary demands as “legally untenable”, citing rejections by previous arbitration proceedings as well as court rulings on this matter.

The dispute began over a decade ago when SpiceJet was acquired back by its current promoter Ajay Singh from KAL Airways/Maran in 2015. As part of the deal, it was argued that around Rs. 679 crore was owed for preference shares and warrants issued. However, Maran later contested this in court, alleging the airline failed to fulfil its commitments.

An arbitration panel of retired Supreme Court judges dismissed KAL Airways/Maran's initial claim for over Rs. 1,300 crore in damages. The Delhi High Court also rejected their appeal on this. Despite this, the complainant duo continues pursuing the same amount as damages through other means, according to SpiceJet.

They stated losses have been estimated at over Rs. 1,323 crore by an external firm. However, SpiceJet said such monetary claims have been explored thoroughly and dismissed by legal authorities in the past. It accused KAL Airways/Maran of sensationalizing the matter to mislead people, given the dispute's complex history spanning over a decade through different hearings and judgements.

Going forward, it remains to be seen how the legal proceedings evolve as KAL Airways/Maran have indicated plans to challenge the recent Delhi High Court order, which had set aside an earlier ruling in their favor, prolonging this long-winding aviation dispute.

Northlines
Northlines
The Northlines is an independent source on the Web for news, facts and figures relating to Jammu, Kashmir and Ladakh and its neighbourhood.

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