SpiceJet successfully completes ₹100 crore payment to Kalanithi Maran

SpiceJet announced on Tuesday that it has successfully completed the payment of ₹100 crore to Kalanithi Maran, the chairman of Sun Group, in compliance with the Delhi High Court's order related to the execution of an arbitral award.

On Monday, SpiceJet had presented a cheque worth ₹37.5 crore to Maran in the courtroom. However, his legal representatives declined the cheque and requested that SpiceJet make a bank transfer. Later, SpiceJet issued a statement confirming that it had made a payment of ₹77.5 crore to Kal Airways Private Limited and committed to settling the remaining amount on Tuesday.

On August 24, the Delhi High Court had instructed the airline to disburse ₹100 crore to Maran by September 10. SpiceJet had informed the court on Monday that it was unable to meet the payment deadline due to bank holidays on September 9 and 10.

SpiceJet's outstanding debt to Maran totals ₹397 crore, and the court is scheduled to address the remaining payment issues on October 3.

The arbitration award execution case had seen Maran's side argue that SpiceJet had willfully disobeyed orders and forfeited its right to be heard in court. They had also requested that the court seize the airline's entire profit of ₹204 crore, along with future profits, if the debt remained unpaid.

In response, SpiceJet contended that demanding immediate payment could potentially push the airline into insolvency, which would not be advantageous for the Maran family, as they would then become operational creditors. SpiceJet also cited various financial challenges, including regulatory restrictions on Boeing 737 Max aircraft, losses stemming from the COVID-19 pandemic, and elevated fuel prices due to the Ukraine conflict.

The Delhi High Court had previously upheld the arbitration award in its order dated July 31. The court directed SpiceJet and its owner, Ajay Singh, to reimburse ₹579 crore plus interest to Kalanithi Maran, who had transferred his shareholding to Singh in 2015 during SpiceJet's financial difficulties.

Singh had assumed SpiceJet's liabilities amounting to ₹1,500 crore as part of the agreement, and Maran subsequently approached the court, alleging non-issuance of convertible warrants and preference shares or return of the money. In 2018, an arbitration panel awarded Maran a refund of ₹579 crore plus interest, and in 2020, the high court ordered SpiceJet to deposit ₹243 crore as interest payment.