Thu, Dec 8, 2016 | updated 09:33 PM IST

SpiceJet asked to deposit Rs. 580 cr in Share Purchase Agreement dispute

Updated: Jul 29, 2016 12:01 IST

New Delhi, July 29 (ANI): The Delhi High Court on Friday directed SpiceJet to deposit Rs. 580 crores in Share Purchase Agreement dispute.

The amount has to be deposited with the court in five installments over a period of five months.

The High Court's order comes on a plea filed by Kalanithi Maran and his Kal Airways Pvt. Ltd against SpiceJet regarding a share-transfer dispute.

The transfer relates to a dispute arising out of non-issuance of warrants in favour of Maran after a transfer of ownership to Ajay Singh, the controlling shareholder of SpiceJet Ltd.

Maran and Kal Airways had transferred their entire 350.4 million shares in SpiceJet, amounting to a 58.46 percent stake in the airline, to its co-founder Singh in February 2015 when the ownership of the airline changed hands.

Under the deal, which gave Singh control of the airline, they were to receive the redeemable warrants in return for Rs. 690 crores which they spent on SpiceJet towards operating costs and debt payment.

Maran has also sought a refund of Rs. 690 crores, an amount that had been paid by him and Kal Airways to SpiceJet at the time of transfer of ownership of the airline in 2015. (ANI)