HC asks SpiceJet, Maran to resolve dispute by arbitration

New Delhi: SpiceJet was today directed to deposit Rs 579 crore in 12 months before the Delhi High Court which asked the airline and Sun Group chief Kalanithi Maran alongwith his Kal Airways to appoint an arbitral tribunal to decide the share transfer dispute between them in a year.

The order came on Maran and his airline's plea for issuing them stock warrants in SpiceJet as per a sale purchase agreement (SPA) of 2015 which led to transfer of ownership of the budget carrier to its co-founder Ajay Singh.

Maran and his airline have alleged in their plea that despite giving around Rs 579 crore to SpiceJet, the carrier failed to issue them the warrants or allot them tranche 1 and 2 of Convertible Redeemable Preference Shares and the amount was not utilised for paying statutory dues due to which they were also facing prosecution.

Justice Manmohan Singh directed SpiceJet to deposit the amount of Rs 579 crore in a fixed deposit in the name of Registrar of the Delhi High Court for 12 months.