SpiceJet shares rise amidst ₹450cr refund claim from Kalanithi Maran
What's the story
Shares of budget airline SpiceJet experienced a 3% increase today, following the company's announcement to seek a refund of ₹450 crore from former promoter Kalanithi Maran and his firm, KAL Airways. This decision was prompted by a May 17 order by the Delhi High Court, which ruled in favor of SpiceJet and its promoter, Ajay Singh, in an ongoing share transfer dispute against Maran and KAL Airways. The recent ruling overturns an earlier decision made by a single-judge bench.
Court verdict
High court ruling paves way for SpiceJet's refund claim
The Division Bench of the Delhi High Court has overturned a previous ruling by a single-judge bench, allowing SpiceJet to pursue a significant refund. The airline had earlier paid ₹730 crore to Maran and KAL Airways, which included ₹580 crore in principal and an additional ₹150 crore toward interest. Following the reversal of the contested order, SpiceJet is set to receive a refund of ₹450 crore as stated in their stock exchange filing.
Legal battle
SpiceJet and Singh's previous attempts to overturn award
Prior to the recent ruling, SpiceJet and its promoter, Singh, had sought to overturn the part of the award that directed them to refund ₹270 crore to KAL Airways and Maran. They also requested a waiver of the 12% interest on warrants and the setting aside of the 18% interest granted in the award. At the time of writing, shares of SpiceJet were trading at ₹62.60 apiece, marking a rise of 2.6%.