Chennai-based Sun Group, represented by its chairman and founder Kalanithi Maran, has firmly stated that there is “no question” of reaching an amicable settlement with SpiceJet regarding an interest payment related to an arbitration award. This announcement comes after media reports suggested talks between SpiceJet and Sun Group for a possible settlement following a recent Supreme Court verdict favouring Maran.
Supreme Court Verdict: SpiceJet Ordered to Pay Maran Rs 380 Crore
In a 2018 arbitration award case, the Supreme Court ruled that SpiceJet must pay Maran, its former promoter, the entire arbitral amount exceeding Rs 380 crore. The verdict left no room for further negotiations, solidifying Maran’s claim.
Denial and Demand: Sun Group Counters SpiceJet’s Settlement Talks
Sun Group responded to reports of settlement talks by issuing a statement denying any ongoing negotiations. The group emphasised that the matter had reached finality through the Supreme Court’s order on July 7, 2023. Sun Group expressed its expectation for SpiceJet to comply with the court’s orders and promptly pay the interest amount of Rs 386 crore.
Supreme Court’s Stance: No Extension for Payment, Awaited High Court Proceedings
The Supreme Court refused SpiceJet’s request for additional time to make the payment, rebuking the airline for failing to pay Rs 75 crore as directed earlier. The court clarified that the current payment of Rs 380 crore serves as a security deposit, with the final amount to be determined by the Delhi High Court in the pending proceeding under Section 34 of the Arbitration Act.
SpiceJet’s Response: Seeking Extension, Committed to Amicable Settlement
SpiceJet issued a statement addressing the situation, clarifying that they had sought an extension to pay Rs 75 crore but the matter was only listed in court on July 7. The airline affirmed its respect for the court proceedings and orders, stating their commitment to finding an amicable settlement in the larger interest of both parties.
This ongoing legal battle stems from a previous Supreme Court directive in February, which ordered SpiceJet to pay Rs 75 crore within three months to Maran. The airline failed to comply, prompting Maran to approach the Delhi High Court, resulting in the recent verdict for SpiceJet to pay Rs 380 crore. SpiceJet was also instructed to submit an affidavit of assets, which it allegedly failed to do according to Kal Airways, leading to further legal complications.
