May 22nd 2024.
SpiceJet, a popular airline in India, announced on Wednesday that it will be seeking a refund of Rs 450 crore from its former promoter, Kalanithi Maran, and his company KAL Airways. This request comes after a recent ruling by the Delhi High Court, which overturned a previous decision that required SpiceJet and its current promoter, Ajay Singh, to pay Rs 579 crore plus interest to Maran.
The ruling, which was made on May 17, 2023, was in response to an appeal filed by Singh and SpiceJet against a previous order from July 31, 2023. The court has now remanded the case back to the concerned court, where it will be reconsidered along with other petitions challenging the arbitral award. SpiceJet, in a regulatory filing, stated that it had already paid a total of Rs 730 crore to Maran and KAL Airways, which included a principal amount of Rs 580 crore and an additional Rs 150 crore in interest.
However, with the overturning of the previous order, SpiceJet is now set to receive a refund of Rs 450 crore. This news caused a positive response in the stock market, with SpiceJet's shares rising by 2.62 per cent to Rs 62.60 apiece on the BSE during afternoon trading.
This legal battle between SpiceJet and its former promoter has been ongoing for some time now, and this recent ruling has brought some relief to the airline. The company is hopeful that it will receive the requested refund, which will help improve its financial standing. This development also marks a significant victory for Singh and SpiceJet, as their appeals were successful in overturning the previous order. With this chapter now behind them, the company can focus on its operations and continue to provide quality services to its customers.
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