Execution of Rs 578 cr arbitral award: Supreme Court refuses to extend time for SpiceJet to make payment to Maran Kal Airways
New Delhi, July 7
The Supreme Court on Friday refused to extend the time for making payment to media baron Kalanidhi Maran and his Kal Airways in pursuance of an arbitral award of Rs 578 crore related to a share-transfer dispute, saying these are “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.
Prior to this, the top court had ordered that the bank guarantee of Rs 270 crore furnished by SpiceJet to Maran and his firm must be encashed immediately if the airlines failed to pay Rs 75 crore towards interest on the arbitral award by May 13.
On Friday, a Bench led by CJI DY Chandrachud refused to accept the submissions of senior advocate Mukul Rohatgi, appearing for SpiceJet, and refused to the extend the time, saying the entire award has now become executable.
“The battery of lawyers is involved in all this and you know, the idea is just to delay complying with the orders of the court. I personally will not approve this… The writ of the court has to be complied with and now, they (the Delhi High Court) will execute the award,” the CJI said.
Senior advocate Maninder Singh, representing Maran and his Kal Airways, said that nothing has been paid after the Supreme Court asked them to pay Rs 75 crore as interest and no indulgence be granted to them in the form of extension of time.
Singh, appearing through Karanjawala and Company, said SpiceJet had earlier also failed to comply with the order of the high court directing it to file an affidavit disclosing assets.
”Rs 75 crore is not a small amount,” the lawyer of SpiceJet said.
“But then these are not small parties either… These are all luxurious litigations. No further extension of time can be granted and the award becomes executable,” it said.
On November 2, 2020, the high court had asked the airline to deposit around Rs 243 crore as interest in connection with the share transfer dispute with its former promoter, Maran, and Kal Airways. However, on November 7, 2020, the top court stayed the high court order. (With agency inputs)
