No amicable settlement between SpiceJet and Kalanithi Maran: Sun Group

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The Chennai-based Sun Group said on Monday that there was “no question” of an amicable settlement with SpiceJet regarding the payment of the interest the low-cost airline would have to pay in the arbitration award.

Media reports on Sunday said that SpiceJet is in talks with Kalanithi Maran, chairman and founder of Sun Group, and Cal Airlines for an amicable settlement, following the Supreme Court ruling against the airline. The Supreme Court has asked the airline to pay the entire arbitration amount of over Rs 380 crore to Maran, its former promoter, in the 2018 arbitration case.

“We have come to learn that a statement purportedly from a SpiceJet spokesperson has been circulating among certain sections of the media that SpiceJet is in talks with Kalanithi Maran and Kal Airways for an amicable settlement,” Sun Group said in a statement.

“We deny this and state that there is no matter of amicable settlement with SpiceJet since the matter has come to an end under the Order dated 7 July 2023 of the Honorable Supreme Court of India.”

“We hope that SpiceJet Ltd will abide by the orders of the Supreme Court of India and pay us the interest amount of Rs 386 crore immediately,” it said.

The Supreme Court denied SpiceJet more time to pay the amount and reprimanded the airline for failing to pay Rs 75 crore as per its earlier directive.

On February 13, the Supreme Court ordered the airline to pay ₹75 crore for the total claim of ₹362.49 crores by Maran within three months. The airline defaulted. Maran approached the Delhi High Court in May, saying that Spicejet had failed to comply with the High Court’s order. The Delhi High Court then required SpiceJet to pay Maran Rs 380 crore. Spicejet was also ordered to provide an affidavit of assets.

According to Kal Airways, Spicejet failed to comply with an order dated 4 November 2020, issued by the Delhi High Court, by failing to provide an affidavit of assets. In addition, Spicejet was directed to pay the sum of Rs 242 crore within three weeks of the order issued by the Supreme Court on 2 September 2020. Spicejet sought to amend this order, but its application was denied. The airline then challenged the orders to the Supreme Court, which in February required it to cash the bank guarantee and pay the exact amount directly to Cal Airways.