'Baseless': SpiceJet refutes ₹1,323 cr claims by KAL Airways, Kalanithi Maran; stock down 2%

Shares of SpiceJet skid as much as 2% to ₹58.60 on the BSE after KAL Airways and Kalanithi Maran demanded damages of ₹1,323 crore by the low cost carrier. The airline, however, refuted the claims, saying that these assertions are not only "legally untenable" but also a "regurgitation" of previously rejected claims by the arbitral tribunal and then the Delhi High Court.

SpiceJet said KAL Airways and Kalanithi Maran initially sought damages of more than ₹1,300 crore during the arbitration proceedings. "This claim was thoroughly examined and subsequently rejected by a panel of three retired Supreme Court judges," said the Gurugram-based budget airline.

SpiceJet has said that KAL Airways and Kalanithi Maran also appealed to the single-judge bench of the Delhi High Court, seeking the same amount in damages, which was again rejected. "They chose not to pursue any appeal before the appellate jurisdiction and consequently, the matter attained finality. This matter is devoid of any merit and appears to be an endeavour to sensationalise the issue and mislead the public," the airline said.

The airline says the division bench of the Delhi High Court on May 17, 2024, had ruled in favour of SpiceJet and Ajay Singh. It reiterated that after the HC's Division Bench's order, it would now pursue a refund of ₹450 crore from KAL.

Challenging the Delhi HC's order, Kalanithi Maran and his KAL Airways on Monday had sought more than ₹1,323 crore in damages from SpiceJet and its promoter Ajay Singh.

Maran and KAL said they would challenge the order because the decree holders think the aforesaid HC judgement is "deeply flawed" and necessitates further scrutiny. KAL said they are seeking damages in excess of ₹1,323 crore, which have been assessed by FTI Consulting LLP, UK, which specialises in estimating losses that arise due to breach of contracts.

After the Delhi High Court's ruling on May 17, 2024, SpiceJet last week had said it would seek a refund of ₹450 crore out of ₹730 crore it previously paid to the former promoter.

The budget airline said the Delhi HC division bench ruled in its favour in the long-standing share transfer case against Maran and KAL. SpiceJet said it paid a total of ₹730 crore, comprising ₹580 crore in principal along with an additional ₹150 crore towards interest, to Maran and KAL Airways. The company claimed with the setting aside of the impugned order, it is set to receive a "refund of ₹450 crore".

Meanwhile, the Delhi HC on Monday refused to interfere with the order of the single-judge, which has directed the Ajay Singh-led airline to return two aircraft and three engines, which have been leased from TWC Aviation Capital.