SC to contemplate mediation plea to settle SpiceJet & Maran dispute
The Supreme Court on Tuesday said it would consider a joint request for mediation of cash-strapped airline SpiceJet owned by Ajay Singh and the airline’s former owners Maran family and their KAL airways headed by media baron Kalanithi Maran for amicably settling all pending disputes between them including the row over the share-transfer issue. SpiceJet was started by Ajay Singh in 2002. BJP-linked Ajay Singh was a close aide of late Union Minister Pramod Mahajan and when UPA came to power, DMK’s Maran family became the owners of the airline. Interestingly when BJP came back to power in 2014, the Maran family sold SpiceJet back to Ajay Singh in a dubious way.
The sale of SpiceJet back to Ajay Singh was totally illegal as the company was listed on Stock Exchange and the deal was done at a non-disclosed price. Later Maran family and Ajay Singh started tussling, it was revealed to the courts that the deal was for just Rs. Two (Repeat – Just Rs.2) on the promise that Ajay Singh would take care of the financial burdens. This was a total illegal deal.
On Tuesday, the bench comprising Chief Justice N V Ramana and Justices J K Maheshwari and Hima Kohli was apprised by senior advocate Mukul Rohatgi, appearing for SpiceJet, that there were three pending issues between the low-cost airline and Kalanithi Maran and out of these, one has been settled on July 29. Initially, Rohatgi sought four to six weeks’ time for settling all the issues between the parties.
However, senior advocate Vikas Singh, representing Maran and his Kal Airways, suggested mediation between the parties at the Hyderabad mediation centre which was also supported by SpiceJet through Rohatgi. At the outset, Rohatgi said, “there were three issues between us. One is the issue arising in this matter and there are other two issues that are not part of the present matter. The other side is keen to settle all the three in one go. Two issues are foreign to this matter and out of those, one has been settled on July 29.”
“One issue was that the airline had taken a loan from a lender which was backed by the security given by the respondents (Maran and others) and the respondents wanted that we should clear the loan and the security may be released. We have reached a settlement with the lender and the security will be released and so that part is over,” he said. Another outstanding issue between the parties is the prosecution of the respondents (Maran and others) for the TDS being delayed, he said.
“I would suggest that mediation at Hyderabad mediation centre,” Singh suggested on behalf of Maran. Both parties agreed to the suggestion. The bench was hearing SpiceJet’s appeal against the November 2, 2020 order of the High Court, asking 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.
On November 7, 2020, the apex court stayed the Delhi High Court order asking SpiceJet to deposit around Rs.243 crore as interest in connection with the share transfer dispute.
Meanwhile, in another development, SpiceJet on Tuesday announced that it has entered into a settlement with aircraft lessor Goshawk Aviation and its affiliated entities related to two Boeing 737 Max aircraft and one Boeing 737-800 NG aircraft. Goshawk Aviation Limited is one of the main lessors of Max aircraft of SpiceJet, the airline’s statement noted.
“The settlement with Goshawk follows SpiceJet’s successful settlements with De Havilland Aircraft of Canada Limited, Credit Suisse, Boeing, CDB Aviation, BOC Aviation, and Avolon,” it mentioned. SpiceJet and Goshawk have agreed to settle all their disputes under the aircraft lease agreements for three aircraft, it said.
“The agreement, the terms of which are confidential, ends all litigation proceedings between the parties (SpiceJet and Goshawk). All proceedings, including before the UK Court and Execution Proceedings before the Delhi High Court will be withdrawn accordingly,” it noted. SpiceJet has been making losses for the last four years. It incurred net losses of Rs.316 crore, Rs.934 crore, and Rs.998 crore in 2018-19, 2019-20, and 2020-21, respectively. In the April-December period of 2021, the airline posted a net loss of Rs.1,248 crore. The airline is yet to declare results for the January-March period of 2022.
Aviation regulator DGCA had on July 27 ordered SpiceJet to operate not more than 50 percent of its flights, which were approved for the summer schedule, for a period of eight weeks. The order was issued by the Directorate General of Civil Aviation (DGCA) after it had on July 6 issued a show-cause notice to SpiceJet, following at least eight incidents of technical malfunction in its aircraft since June 19.
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Fight for corrupt money share !! Supreme Court will decide !!