HC refuses to stay order upholding arbitral award
Single judge earlier ordered SpiceJet and its promoter Ajay Singh to refund Rs579cr plus interest to media baron Kalanithi Maran
New Delhi: The Delhi High Court on Thursday refused to stay a single judge order upholding an arbitral award asking SpiceJet and its promoter Ajay Singh to refund Rs 579 crore plus interest to media baron Kalanithi Maran.
A division bench of Justices Yashwant Verma and Dharmesh Sharma issued notice and sought the response of Maran and his company Kal Airways on an appeal filed by Singh and SpiceJet challenging the single judge’s July 31 order. The high court rejected the application for stay on the order of the single judge bench, saying the Supreme Court’s July 7 order binds it and listed the appeal for further hearing on October 31. “In light of the Supreme Court directions and order of July 7, no interim order can possibly be granted in favour of the appellants absolving them of the obligations which emanate from the two orders (of the apex court). The application is consequently rejected,” the bench said.
On July 7, the Supreme Court had refused to extend the time granted to SpiceJet for making payment to Maran and Kal Airways in pursuance of the arbitral award, saying these were “luxury” litigations. While refusing to extend the time, the Delhi High Court had on June 1 directed SpiceJet to deposit “forthwith” Rs 75 crore that has to be paid to Maran and his Kal Airways towards interest on the arbitral award.
During the hearing on Thursday, senior advocate Amit Sibal, representing SpiceJet and Singh, argued that his challenge was on the issue of 18 per cent interest which the tribunal had directed SpiceJet to pay. He said SpiceJet could not pay Rs 75 crore to Maran due to lack of funds and not because it did not want to pay.
SpiceJet, in a statement, said, “We are hopeful for an expeditious resolution of the appeal. We are committed to presenting our matter diligently and respectfully seeking a just and fair resolution.” Maran and Kal Airways were represented by senior lawyer Maninder Singh and law firm Karanjawala and company.
On July 31, the single judge had upheld the award announced by the arbitral tribunal on July 20, 2018 in favour of Maran and Kal Airways.
