HC notice for non-compliance of orders, seeks CMD’s presence

NEW DELHI: The Delhi High Court on Monday issued notice to SpiceJet Ltd and its Chairman and Managing Director Ajay Singh in Kal Airways and its promoter Kalanithi Maran’s application seeking urgent hearing of its enforcement petition in a case where the former is to pay approximately Rs 390 crore to it towards its interest liability under the arbitral award.

Allowing the application, a bench of Justice Yogesh Khanna directed SpiceJet and its CMD to file an affidavit disclosing all their assets before the next date of hearing, September 5, and also mandated the physical presence of Ajay Singh before it.

The Supreme Court had, on February 13, directed SpiceJet to pay Rs 75 crore to decree holder (Kal Airways and Maran) within a period of three months towards its interest liability under the arbitral award, and had also clarified that in the event of failure to pay, the entire award would become executable in entirety in favour of decree holder.

On the applications seeking further time extension that were moved by SpiceJet for two more months as the three months time period had expired on May 13, and it failed in honouring the top court’s order, senior advocate Maninder Singh, appearing for the decree holder, informed the court that the apex court order of February 13 has been now reaffirmed by another order dated July 7, whereby the time applications of Spice- Jet are also dismissed.

The apex court, while dismissing the same, observed that the SpiceJet’s application is nothing but a delay tactic to not pay money even when there are court orders directing the same.