The Supreme Court on Tuesday ordered mediation in a dispute between Ajay Singh, chairman of SpiceJet, Kalanithi Maran, a former promoter of the airline, and Maran’s KAL Airways after the sides said they wanted an amicable settlement.
The court asked the Hyderabad Mediation Centre to look into the settlement talks. Senior advocate Mukul Rohatgi, who appeared for SpiceJet, told the court the parties need a detailed discussion for a settlement.
The disputes date back to 2015 when Maran sold his 58.46 per cent stake, or 50.4 million shares, in SpiceJet to Singh for Rs 2 after the airline suffered financial troubles. Maran approached the Delhi High Court a year later alleging a breach of agreement by Singh for not issuing him 189 million share warrants and preference shares despite his (Maran’s) Rs 679-crore infusion. He claimed Rs 1,300 crore from SpiceJet and Singh. In July 2016, the High Court asked Maran and Singh to set up an arbitration tribunal.
The tribunal—comprising three retired judges of the Supreme Court—in 2018 rejected Maran and KAL Airways’ claims for damages. In September 2020, the Delhi High Court asked Spicejet to submit Rs 243 crore to Maran. The Supreme Court stayed the order in November 2020 after hearing petitions filed by SpiceJet.
Rohatgi said on Tuesday that the matter can be listed after four to six weeks' time, so that the parties can reach a settlement. Lawyer Vikas Singh, who represented Maran and Kal Airways, said the settlement talks could be referred to the Hyderabad Mediation Centre. Rohatgi agreed to this.
“The Supreme Court had directed the parties to try and settle the matter through mediation and have stated that the Mediation Centre would be indicated in the order,” said a statement by Karanjawala & Co, a law firm that appeared for KAL Airways and Maran.
First Published: Tue, August 16 2022. 18:59 IST