The Delhi High Court declined to impose a stay on the order of a single-judge bench on Thursday, which had directed SpiceJet and its founder Ajay Singh to pay 579 crore rupees along with interest to media magnate Kalanidhi Maran.
The division bench of Justices Yashwant Varma and Dharmesh Sharma, while rejecting the application challenging the single-judge bench’s July 31 order, issued a notice to Maran and his company Kal Airways during an appeal by SpiceJet and Kalan Airways against the July 7 order of the Supreme Court.
The bench said, “In the light of the directions of the Supreme Court and the order of July 7, it would possibly not be appropriate to pass any interim order in favor of the appellants (SpiceJet and Kalan Airways) which relieves them of the responsibilities arising out of two orders (of the top court). Accordingly, the application stands dismissed. The appeal is listed for further hearing on October 7.”
The bench had on June 1 directed SpiceJet to deposit 75 crore rupees immediately as a form of interest on the arbitral award in favor of Maran and his company Kal Airways. During Thursday’s hearing, Senior Advocate Amit Sibal, representing SpiceJet and Singh, argued that their challenge was on the issue of 18 percent interest, which the top court had directed SpiceJet to pay Maran.
Sibal said SpiceJet could not pay 75 crore rupees to Maran due to financial constraints, but it did not mean that it was unwilling to pay.
In a statement, SpiceJet stated, “We are hopeful of an early resolution of the appeal. We are committed to presenting our case with diligence and respect, seeking a fair and impartial resolution.”
Maran and Kal Airways were represented by Senior Advocate Maninder Singh and law firm Karanjawala & Company.
The single-judge bench had on July 31 upheld the July 20, 2018, arbitration award in favor of Maran and Kal Airways against SpiceJet.