Share-transfer dispute: Delhi HC asks Spicejet, Kalanithi Maran to set up arbitral tribunal

Zee Media Bureau

New Delhi: Spicejet will deposit Rs 579 crore in Delhi High Court till share transfer issue with Kalanithi Maran and Kal Airways is decided by arbitrator.

Delhi High Court on Friday directed Spicejet and Kalanithi Maran to set up arbitral tribunal which has to decide the issue in 12 months.

Maran and his airline have alleged in their plea that despite giving around Rs 579 crore to Spicejet, the carrier failed to issue them the warrants or allot them tranche 1 and 2 of Convertible Redeemable Preference Shares and the amount was not utilised for paying statutory dues due to which they were also facing prosecution.

Spicejet had earlier told the court that the change of ownership was effected as a rehabilitative measure to address the liability of Rs 2,000 crore incurred by the airline when it was under the management of Maran.