Delhi HC sides with Kalanithi Maran, directs Spice Jet to pay arbitral award

New Delhi The Delhi High Court on Monday upheld an arbitral award passed by the tribunal comprising three retired Supreme Court judges in the matter of low-cost airline SpiceJet and Kal Airway's promoter Kalanithi Maran, favouring the latter.

Justice Chandra Dhari Singh pronounced the verdict in a section 34 petition filed by the parties in connection with the above mentioned arbitral award dated July 20, 2018, wherein the decree holders -- Kal Airways and Kalanithi Maran - were awarded a refund of Rs 308 crore towards the warrants, as well as a refund of Rs 270 crore towards Cumulative Redeemable Preference Shares (CRPS).

Additionally, they were also awarded an interest of 12 per cent towards pendente lite and an interest of 18 per cent from the last due date, in case the payments directed to be made by SpiceJet and its Chairman and Managing Director (CMD) Ajay Singh are not completed within two months from the date of the award.

SpiceJet Singh had challenged the arbitral award by filing section 34 petition, seeking to set aside the refund of Rs 270 crore granted to Kal Airways and Maran.