SC asks Kalanithi Maran, KAL Airways to consider SpiceJet’s Rs 600 cr settlement offer

 The Supreme Court on Thursday asked Kalanithi Maran, the former promoter of SpiceJet, to consider the full and final settlement offer made by the private airline to end the dispute in a share transfer matter.

A bench headed by Chief Justice NV Ramana heard the matter. “SpiceJet has offered to pay Rs 600 cr in cash in the share transfer case with its former promoter Kalanithi Maran and his firm KAL Airways for a full and final settlement of all disputes. Out of the principal amount of Rs 578 cr awarded in arbitration, SpiceJet has already paid Rs 308 cr in cash and deposited a bank guarantee of Rs 270 cr,” it said in a release.

Senior advocate Mukul Rohatgi, appearing on behalf of SpiceJet, proposed to pay the bank guarantee equivalent amount of Rs 270 crore in cash and top it up with additional Rs 22 crore aggregating the total pay-out to Rs 600 crore as full and final settlement of all disputes between the parties.

Maran and his firm, KAL Airways, had urged the top court to lift the stay on a Delhi High Court order asking the low-cost airline to deposit Rs 243 crore as interest on the amount of Rs 579 crore in the dispute.

In November 2020, the top court stayed the high court order. Senior advocate Maninder Singh, along with advocates from Karanjawala & Co, represented KAL Airways in the top court. Maran had sought the stay to be lifted to secure the decreed amount - refund amount awarded and interest - from SpiceJet.

The top court asked Singh to discuss the settlement with his client. The bench, in its order, said: “List on February 14, to enable the learned senior counsel for the petitioners to seek instructions.”