SpiceJet Airlines
Representational Image.Reuters

The apex court on Friday rejected SpiceJet plea and directed the company to pay a sum of Rs 579 crore over a share transfer dispute arising out of change in the airline's ownership in 2015.

A bench headed by justice Rohinton F Nariman upheld the Delhi High Court's July3 judgement, directing the budget carrier to deposit Rs 250 crore in a cash deposit on or before August 31 and the balance of Rs 329 crore by way of a bank guarantee with the court towards the disputed amount, Mint reported.

Arbitration proceedings between the parties are underway and likely to be wrapped up within six months.

"It was virtually a consent order passed by the Delhi high court. I am without a penny from the last two years. They have shown the amount as payable under their balance sheet," Abhishek Manu Singhvi, counsel for Kalanithi Maran and KAL Airways, SC said.

In their suit, Maran and his airline had sought issuance of stock warrants in SpiceJet to them as per a sale purchase agreement (SPA) of 2015 which led to transfer of ownership of the budget carrier to Ajay Singh.

One of the main issues that SpiceJet has raised for appealing the order, the airline's lawyer C.A. Sundaram had told the court, was that the July ruling amounted to an interim order under the Arbitration Act, even when there was no pending arbitration between the two parties, Mint reported.

Maran and KAL Airways had transferred their entire 58.46 percent stake in SpiceJet, amounting to 35.4 crore (350.4 million) shares, to its co-founder Ajay Singh in February 2015, leading to a change in ownership of the airline.

Arbitration proceedings between the parties are underway and are likely to be wrapped up within six months.

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