Today(on 26th July), The Supreme Court has upheld the Delhi High Court’s decision to remand the arbitration dispute between Kalanithi Maran and SpiceJet back to a single judge. This follows ongoing legal battles over an arbitral award in favor of Maran.
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NEW DELHI: Today(on 26th July), the Supreme Court has upheld a decision by a division bench of the Delhi High Court that remanded the arbitration dispute between Kalanithi Maran and SpiceJet back to a single judge. This decision follows a series of legal battles over an arbitral award favoring the former promoter of SpiceJet, Kalanithi Maran.
The dispute traces back to a 2018 arbitral award that required SpiceJet to refund Rs.579 crore with interest to Kalanithi Maran. Initially, in July last year, a single-judge bench of the Delhi High Court declined to intervene in this award. However, in May, a division bench of the same court overturned this ruling, sending the case back to the single judge for reconsideration.
Chief Justice of India DY Chandrachud, delivering the Supreme Court’s judgment, stated that the division bench of the high court was correct in its decision to send the case back to the single judge. He emphasized that the single judge had not adequately considered the matter.
“This is egregious… The single judge’s application of judicial reasoning is questionable. We concur with the division bench’s decision to remand the matter to the single judge for reconsideration under Section 34.”
– CJI Chandrachud remarked.
ALSO READ: Delhi HC Upholds Single-judge Order Asking SpiceJet to Return Two Aircraft and Three Engines
Impact on SpiceJet
Following the Supreme Court’s verdict, SpiceJet issued a statement highlighting their next steps. Following this success, SpiceJet will now pursue a refund of Rs.450 crore, as outlined in our previous press release. In addition to significant steps being taken by SpiceJet to raise new funds, this refund will additionally strengthen the airline’s financial position and enable further expansion.
The decision has significant financial implications for both parties. For SpiceJet, successfully securing the refund is expected to bolster their financial stability. The airline has been actively working on raising new funds, and this development is seen as a positive step towards enhancing their financial health and supporting future growth initiatives.
On the other hand, Kalanithi Maran stands to reclaim a substantial amount owed to him, reflecting the culmination of a prolonged legal battle. The resolution of this arbitration dispute will likely have a lasting impact on the corporate governance and financial strategies of both entities involved.
