The Supreme Court has rejected an appeal by SpiceJet against an order requiring it to deposit cash and a bank guarantee totalling ₹5.79 billion (US$90.1 million) in court in connection with a share transfer dispute with former promoter Kalanithi Maran and KAL Airways (KMKAL). The order was made on 3 July by Delhi High Court.
Luthra & Luthra represented KMKAL. “Arbitration (with SpiceJet) shall continue and the firm represents the client in the ongoing proceedings,” said Luthra & Luthra (L&L) partner Anirban Bhattacharya. “L&L drafted the legal notice claiming upon [SpiceJet promoter] Ajay Singh and SpiceJet to perform their part of the share sale and purchase agreement dated 29 January 2015 and successfully represented the clients in section 9 proceedings [under the Arbitration and Conciliation Act, 1996] followed by the section 37 appeal at the division bench and finally in the Supreme Court.”
Before the Supreme Court, SpiceJet argued that the order of deposit, if it remained in effect, would bring about the financial death of the airline and ought to be modified.