An arbitration tribunal in New Delhi has rejected a INR13.23 billion rupee (USD192.5 million) claim made by ex-owner of SpiceJet (SG, Delhi International) Kalanithi Maran against the airline now headed by Chairman Ajay Singh, the Times of India has reported.
Maran demanded compensation from SpiceJet for what he perceived as wrongdoing during the airline takeover back in 2014. The ex-owner sold his 58.5% stake to Ajay Singh and was allegedly to receive INR189 million worth of share warrants and preference shares in return for his earlier investment into the airline. These shares were never issued to Maran, although the court has now cleared SpiceJet's actions.
SpiceJet explained in a filing to the Bombay Stock Exchange (BSE) that the shares were not issued due to a lack of regulatory approval and not because the airline did not want to do so.
"The tribunal has held that there was no breach by the company in pursuing the approval from relevant authority and since the same was not received for reasons not attributable to the company, the company cannot be held to be in breach or be made liable for damages," the Indian LCC said.
However, the court has ordered SpiceJet to return Maran INR5.78 billion, a sum which includes INR3.08 billion Maran paid to the airline towards the never issued shares plus interest. The airline said this amount had been previously deposited at an escrow account and will not have an effect on the company's current balance sheet.
The court has also awarded INR290 million in compensation to SpiceJet as a result of a counterclaim filed by the airline.
