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The Delhi high court on Monday told low-cost carrier SpiceJet Ltd to pay Rs 50 crore to former promoter Kalanithi Maran and KAL Airways within six weeks, as part of an arbitral award of 2018.
The court said the payment shall be made subject to the outcome of SpiceJet's appeal challenging the interest amount awarded by the arbitral tribunal.
The matter will now be heard on May 14.
A single judge of the court on July 31 last year refused to interfere with the 2018 arbitral tribunal award that asked SpiceJet to refund Rs 579 crore with interest accrued to Maran in the share transfer dispute.
SpiceJet had last year told the Delhi high court that it was ‘struggling to stay afloat’ after the low-cost carrier was ordered to make a payment to its former owner Kalanithi Maran over money owed.
Senior Advocate Maninder Singh, appearing for Maran and KAL Airways, told the court that the carrier would pay Rs 194 crore but has not done so, and now the amount with interest is Rs 250 crore.
Singh sought an attachment of Rs 194 crore lying in SpiceJet's YES Bank account.
The court refused to pass any attachment order and said, “Today, they (SpiceJet) are a running company, this will sink them.
"I know that money needs to be paid, I am giving them breathing space.
"I can order payment of Rs 194 crore, but it will sink them.”
SpiceJet’s appeal against the interest payable to Maran is pending before another bench of the high court.
The case relates to a share transfer dispute between SpiceJet’s chairman and managing director Ajay Singh and Maran and his KAL Airways.
The matter was referred to arbitration.
