SpiceJet is planning to seek a refund of Rs 450 Crores out of the Rs 730 Crores it has previously paid to former promoter Kalanithi Maran and his company, as per the recent ruling by the Delhi High Court on May 17.
SpiceJet plans to secure a refund of Rs 450 Crores from former promoter Kalanithi Maran and his company after a Delhi High Court ruling
SpiceJet is planning to seek a refund of Rs 450 Crores out of the Rs 730 Crores it has previously paid to former promoter Kalanithi Maran and his company, as per the recent ruling by the Delhi High Court on May 17.
Last week, the Delhi High Court's Division Bench issued a ruling in favour of SpiceJet and its promoter, Ajay Singh, in the ongoing share transfer dispute against former promoter Kalanithi Maran and his company, KAL Airways.
This recent decision contradicts a prior judgment by a single-judge bench and puts SpiceJet in a position to claim a significant refund.
At 1:45 pm, the shares of the aviation firm were trading at Rs 62.21, up by almost 2 per cent on the Bombay Stock Exchange (BSE).
"SpiceJet has paid a total of Rs 730 Crore, comprising Rs 580 Crore in principal along with an additional Rs 150 Crore towards interest to Maran and KAL Airways. With the setting aside of the impugned order, SpiceJet is set to receive a refund of Rs 450 Crore," the aviation firm said in a release.
SpiceJet and Ajay Singh's appeal raised important issues related to the refund and justification of interest in the case. The Division Bench recognised the validity of these concerns, highlighting that they were not adequately addressed in the previous order of last year.
The Division Bench stated that "the Single Judge had erred in dismissing the Section 34 petitions of Ajay Singh and SpiceJet without due consideration of the claims of patent illegality and the order of refund passed against SpiceJet" despite acknowledged breaches by KAL Airways and Kalanithi Maran.
On an annual basis, the shares of the aviation firm have delivered a massive return of 121 per cent on the BSE.