SpiceJet-Maran lawsuit hearing postponed to October 13 by Delhi High Court

 SpiceJet-Maran lawsuit hearing postponed to October 13 by Delhi High Court

The Delhi High Court on Monday postponed a case brought by Sun Group Chairman Kalanithi Maran against low-cost carrier SpiceJet over an arbitral ruling till October 13. The lawsuit has been postponed without a hearing twice in a straight, which gives SpiceJet some leeway from its need to pay Maran's outstanding debts.

Of the 397 crore that SpiceJet owes Maran, 100 crore were paid last month. The airline was required to pay Maran 100 crore by September 10th, under the high court's judgment from 24 August.

Maran had argued that SpiceJet had lost its right to a judicial hearing in the arbitration award execution matter by willfully defying instructions. If the loan was not paid, he asked the court to confiscate SpiceJet's whole 204 crore earnings as well as any future gains.

In its answer, SpiceJet stated that the Marans wouldn't gain since they would become operational creditors if the demand for quick payment forced SpiceJet into bankruptcy. SpiceJet also claimed that a number of causes contributed to its financial woes, such as the acquisition of Boeing 737 Max aircraft that authorities have forbidden, losses brought on by the COVID-19 outbreak, and elevated fuel costs as a result of the crisis in the Ukraine.

After SpiceJet almost went out of business in 2014–15 due to a severe liquidity shortage, Maran surrendered his full interest in the airline to Ajay Singh, the current chairman and managing director, in February 2015. Singh, who spent 2 to acquire SpiceJet, also took on board the airline's 1,500 crore in liabilities.

In accordance with the arrangement, SpiceJet, run by Singh, received 679 crore in payments from Maran and Kal Airways for the issuance of warrants and preference shares. Maran, however, claimed that SpiceJet had not granted convertible warrants and preference shares or reimbursed the money when he filed a case with the Delhi High Court in 2017.

A panel of arbitrators denied Maran's claim for Rs 1,323 crore in damages for warrants not being issued to him and Kal Airways in July 2018, although they did grant him a return of Rs 579 crore plus interest.

The high court mandated that SpiceJet pay 243 crore in interest by 2020. The Supreme Court ordered on February 13 that SpiceJet's bank guarantee for 270 crore, which was to be paid to Maran and Kal Airways as part of the arbitral judgement, be immediately cashed.

Additionally, the top court ordered that SpiceJet pay Maran and Kal Airways 75 crore in interest within three months. The SC refused SpiceJet any more extensions on July 7.

In addition, Credit Suisse is suing SpiceJet in the Supreme Court as a result of a missed payment. On September 22, the Supreme Court authorized the airline to pay Credit Suisse $1 million each month for the next six months in order to repay its unpaid debts.