GG News Bureau
New Delhi, 27th May. In addition to contesting the most recent Delhi High Court ruling in their continuing legal battle, KAL Airways and Kalanithi Maran declared on Monday that they will be suing SpiceJet and its CEO, Ajay Singh, for more than Rs 1,323 crore in damages. This was reported by news agency PTI.
A division bench of the court reversed the ruling of a single judge bench on May 17, which had upheld an arbitral order mandating that SpiceJet and Singh reimburse Maran with interest in the amount of Rs 579 crore.
The bench’s decision granted Singh and SpiceJet’s appeals against the July 31, 2023, order of the sole judge and remanded the case for further review of the petitions contesting the arbitral award.
After speaking with their legal counsel, Maran and KAL Airways have chosen to appeal the decision.
KAL Airways and Maran, the decree holders, said they “believe that the aforesaid judgement is deeply flawed and warrants further scrutiny.” They also asked for damages exceeding Rs 1,323 crore, which FTI Consulting LLP, a UK-based company that specializes in assessing losses from contractual breaches, estimated to be worth.
“In parallel, they are also seeking damages in excess of Rs 1,323 crore, as determined by FTI Consulting LLP, United Kingdom, a globally renowned firm that specialises in estimation of losses arising out of breach of contractual commitments,” KAL Airways stated in a statement on Monday.
Stressing that the damages claim was first brought before the arbitral tribunal, KAL Airways stated that it “has always remained an integral part of their quest for justice.”
Through their appeal of the Delhi High Court ruling and pursuit of their damages claim, they want to obtain a “just and equitable resolution”.
Due to the conflict, which stems from SpiceJet’s betrayal of trust, “enormous hardship to both KAL Airways and Kalanithi Maran for more than a decade.”
In order to obtain payment for outstanding debts totaling Rs 353.50 crore, Maran and KAL Airways are also requesting that the arbitral verdict be put into effect. Stressing that the damages claim was first brought before the arbitral tribunal, KAL Airways stated that it “has always remained an integral part of their quest for justice.”
Through their appeal of the Delhi High Court ruling and pursuit of their damages claim, they want to obtain a “just and equitable resolution”.
Due to the conflict, which stems from SpiceJet’s betrayal of trust, “enormous hardship to both KAL Airways and Kalanithi Maran for more than a decade.”
In order to obtain payment for outstanding debts totaling Rs 353.50 crore, Maran and KAL Airways are also requesting that the arbitral verdict be put into effect. It is “in full compliance with, and supported by, the orders dated February 13, 2023, and July 7, 2023, passed by the Hon’ble Supreme Court directing that the award in favour of the decree holders is executed in its entirety.”
In response to the Delhi High Court’s decision, SpiceJet declared on May 22 that it will request a reimbursement of Rs 450 crore from the Rs 730 crore paid to Maran and KAL Airways.
The conflict began in early 2015 when Singh, the airline’s previous owner, bought it back from Maran following its grounding due to financial issues. SpiceJet was allegedly paid Rs 679 crore by Maran and KAL Airways for the issuance of preference shares and convertible warrants. However, Maran filed a case in the Delhi High Court in 2017, claiming that SpiceJet had not released the shares or paid back the money.
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