Latest news with #ArbitrationAct
Mint
6 hours ago
- Business
- Mint
Supreme Court dismisses Maran's plea seeking ₹1,323 crore damages from SpiceJet
The Supreme Court on Wednesday dismissed a plea filed by Kalanithi Maran and KAL Airways challenging a Delhi High Court order that had rejected their claim seeking ₹ 1,323 crore in damages from SpiceJet. A bench of Justices P. S. Narasimha and Atul S. Chandurkar refused to interfere with the high court's decision. SpiceJet shares shot up nearly 7% in noon trading post the apex court's decision, and we at ₹ 40.71 apiece on BSE. The Sensex was up 0.42%. Maran and KAL Airways had challenged the Delhi High Court's 23 May order that had dismissed their appeals due to delays. The division bench of Justices C. Hari Shankar and Ajay Digpaul had refused to condone a 55-day delay in filing and a 226-day delay in re-filing their appeals, calling their conduct a 'calculated gamble' and accusing them of deliberately concealing information from the court and SpiceJet. Condonation of delay refers to seeking the court's permission to file a case or appeal after the legal deadline has lapsed. Under the Limitation Act, parties typically have 90 days to file an appeal from a single judge's decision to a division bench. If they miss this deadline, they must explain the delay to seek condonation, which the Delhi High Court did not accept in this case. In 2015, Maran and KAL Airways transferred their entire stake in SpiceJet to Ajay Singh for a nominal ₹ 2 amid a financial crisis that had nearly shut the airline. As part of the deal, Singh, who became SpiceJet's chairman and managing director, took over liabilities worth ₹ 1,500 crore. Maran and KAL Airways had also paid ₹ 679 crore to SpiceJet for issuing convertible warrants and preference shares. However, these were never issued under Singh's management, prompting Maran to approach the Delhi High Court in 2017 seeking a refund. In July 2018, an arbitration panel of three retired Supreme Court judges rejected Maran's claim for ₹ 1,323 crore in damages but ordered a refund of ₹ 579 crore plus interest. Both sides challenged parts of this award under the Arbitration Act in the Delhi High Court. In 2023, Justice Chandra Dhari Singh upheld the arbitral award, directing SpiceJet and Singh to refund ₹ 308 crore for warrants and ₹ 270 crore for preference shares, along with applicable interest. SpiceJet challenged this ruling before a division bench. In May 2024, the division bench granted relief to SpiceJet by remanding the case to the single judge for fresh consideration, putting the ₹ 270 crore refund on hold. Maran and KAL Airways approached the Supreme Court against this remand decision, but their plea was dismissed in July 2024. They then refiled their long-pending appeals against the single judge's 2023 order, leading to the high court division bench's May 2025 dismissal due to delays. In a stock exchange filing on 26 May, SpiceJet welcomed the high court's decision.
Mint
7 hours ago
- Business
- Mint
Supreme Court dismisses Maran's plea seeking ₹1,323 crore damages from SpiceJet
The Supreme Court on Wednesday dismissed a plea filed by Kalanithi Maran and KAL Airways challenging a Delhi High Court order that had rejected their claim seeking ₹ 1,323 crore in damages from SpiceJet. A bench of Justices P. S. Narasimha and Atul S. Chandurkar refused to interfere with the high court's decision. Maran and KAL Airways had challenged the Delhi High Court's 23 May order that had dismissed their appeals due to delays. The division bench of Justices C. Hari Shankar and Ajay Digpaul had refused to condone a 55-day delay in filing and a 226-day delay in re-filing their appeals, calling their conduct a 'calculated gamble' and accusing them of deliberately concealing information from the court and SpiceJet. Condonation of delay refers to seeking the court's permission to file a case or appeal after the legal deadline has lapsed. Under the Limitation Act, parties typically have 90 days to file an appeal from a single judge's decision to a division bench. If they miss this deadline, they must explain the delay to seek condonation, which the Delhi High Court did not accept in this case. In 2015, Maran and KAL Airways transferred their entire stake in SpiceJet to Ajay Singh for a nominal ₹ 2 amid a financial crisis that had nearly shut the airline. As part of the deal, Singh, who became SpiceJet's chairman and managing director, took over liabilities worth ₹ 1,500 crore. Maran and KAL Airways had also paid ₹ 679 crore to SpiceJet for issuing convertible warrants and preference shares. However, these were never issued under Singh's management, prompting Maran to approach the Delhi High Court in 2017 seeking a refund. In July 2018, an arbitration panel of three retired Supreme Court judges rejected Maran's claim for ₹ 1,323 crore in damages but ordered a refund of ₹ 579 crore plus interest. Both sides challenged parts of this award under the Arbitration Act in the Delhi High Court. In 2023, Justice Chandra Dhari Singh upheld the arbitral award, directing SpiceJet and Singh to refund ₹ 308 crore for warrants and ₹ 270 crore for preference shares, along with applicable interest. SpiceJet challenged this ruling before a division bench. In May 2024, the division bench granted relief to SpiceJet by remanding the case to the single judge for fresh consideration, putting the ₹ 270 crore refund on hold. Maran and KAL Airways approached the Supreme Court against this remand decision, but their plea was dismissed in July 2024. They then refiled their long-pending appeals against the single judge's 2023 order, leading to the high court division bench's May 2025 dismissal due to delays. In a stock exchange filing on 26 May, SpiceJet welcomed the high court's decision. 'These claims were thoroughly examined and rejected by a panel of three retired Supreme Court judges. KAL Airways and Kalanithi Maran then appealed to the single judge bench of the Delhi High Court seeking the same amount in damages, which was also rejected by the court,' the airline said.
Mint
04-07-2025
- Business
- Mint
Kalanithi Maran moves SC after Delhi HC rejects ₹1,323 crore claim against SpiceJet
New Delhi: Kalanithi Maran and KAL Airways have moved the Supreme Court challenging a Delhi high court order that dismissed their plea seeking ₹ 1,323 crore in damages from SpiceJet in a dispute that dates back to 2015. On Friday, a vacation bench of Justices P.S. Narasimha and R. Mahadevan agreed to hear their petitions on 18 July. Maran and KAL Airways have challenged the Delhi high court's 23 May order that dismissed their appeals due to delays. A division bench of Justices C. Hari Shankar and Ajay Digpaul refused to condone a 55-day delay in filing and a 226-day delay in re-filing their appeals, calling their actions a 'calculated gamble' and accusing them of deliberately concealing information from the court and SpiceJet. It is to be noted that condonation of delay means seeking the court's permission to file a case or appeal after the legal deadline has passed. Under the Limitation Act, parties usually get 90 days to file an appeal from a single judge's decision to a division bench. If they miss this deadline, they must explain the reasons for the delay and seek condonation. In this case, the court did not accept their explanation. This legal battle dates back to 2015, when Maran and KAL Airways transferred their entire stake in SpiceJet to Ajay Singh for a nominal ₹ 2 amid a financial crisis that had nearly shut down the airline. As part of the deal, Singh took over liabilities worth ₹ 1,500 crore. Maran and KAL Airways had also paid ₹ 679 crore to SpiceJet for issuing convertible warrants and preference shares. However, these were never issued under Singh's management, prompting Maran to approach the Delhi high court in 2017 for a refund. In July 2018, an arbitration panel of three retired Supreme Court judges rejected Maran's claim for ₹ 1,323 crore in damages but ordered a refund of ₹ 579 crore plus interest. Both sides challenged parts of this award under the Arbitration Act in the high court. In 2023, Justice Chandra Dhari Singh of the Delhi high court upheld the arbitral award, ordering SpiceJet and Singh to refund ₹ 308 crore for warrants and ₹ 270 crore for preference shares, along with applicable interest. SpiceJet then challenged this ruling before the division bench. In May 2024, the division bench gave relief to SpiceJet by sending the case back to a single judge for fresh consideration, putting the ₹ 270 crore refund on hold. Maran and KAL Airways approached the Supreme Court against this decision to remand the case, but their plea was dismissed in July 2024. Soon after, they refiled their long-pending appeals against the single judge's 2023 order, leading to the high court division bench's May 2025 dismissal due to delays.
Mint
04-07-2025
- Business
- Mint
Kalanithi Maran moves SC after Delhi HC rejects ₹1,323 crore claim against SpiceJet
New Delhi: Kalanithi Maran and KAL Airways have moved the Supreme Court challenging a Delhi high court order that dismissed their plea seeking ₹ 1,323 crore in damages from SpiceJet in a dispute that dates back to 2015. On Friday, a vacation bench of Justices P.S. Narasimha and R. Mahadevan agreed to hear their petitions on 18 July. Maran and KAL Airways have challenged the Delhi high court's 23 May order that dismissed their appeals due to delays. A division bench of Justices C. Hari Shankar and Ajay Digpaul refused to condone a 55-day delay in filing and a 226-day delay in re-filing their appeals, calling their actions a 'calculated gamble' and accusing them of deliberately concealing information from the court and SpiceJet. It is to be noted that condonation of delay means seeking the court's permission to file a case or appeal after the legal deadline has passed. Under the Limitation Act, parties usually get 90 days to file an appeal from a single judge's decision to a division bench. If they miss this deadline, they must explain the reasons for the delay and seek condonation. In this case, the court did not accept their explanation. This legal battle dates back to 2015, when Maran and KAL Airways transferred their entire stake in SpiceJet to Ajay Singh for a nominal ₹ 2 amid a financial crisis that had nearly shut down the airline. As part of the deal, Singh took over liabilities worth ₹ 1,500 crore. Maran and KAL Airways had also paid ₹ 679 crore to SpiceJet for issuing convertible warrants and preference shares. However, these were never issued under Singh's management, prompting Maran to approach the Delhi high court in 2017 for a refund. In July 2018, an arbitration panel of three retired Supreme Court judges rejected Maran's claim for ₹ 1,323 crore in damages but ordered a refund of ₹ 579 crore plus interest. Both sides challenged parts of this award under the Arbitration Act in the high court. In 2023, Justice Chandra Dhari Singh of the Delhi high court upheld the arbitral award, ordering SpiceJet and Singh to refund ₹ 308 crore for warrants and ₹ 270 crore for preference shares, along with applicable interest. SpiceJet then challenged this ruling before the division bench. In May 2024, the division bench gave relief to SpiceJet by sending the case back to a single judge for fresh consideration, putting the ₹ 270 crore refund on hold. Maran and KAL Airways approached the Supreme Court against this decision to remand the case, but their plea was dismissed in July 2024. Soon after, they refiled their long-pending appeals against the single judge's 2023 order, leading to the high court division bench's May 2025 dismissal due to delays. In a stock exchange filing on 26 May, SpiceJet welcomed the high court's decision. 'These claims were thoroughly examined and rejected by a panel of three retired Supreme Court judges. KAL Airways and Kalanithi Maran then appealed to the single judge bench of the Delhi High Court seeking the same amount in damages, which was also rejected by the court.'
India Gazette
18-06-2025
- Business
- India Gazette
Bombay High Court orders BCCI to pay 538 crore to Kochi Tuskers owners
Mumbai (Maharashtra) [India], June 19 (ANI): The Bombay High Court on Wednesday upheld the arbitral awards issued in 2015, directing the Board of Control for Cricket in India (BCCI) to pay a total of Rs 538.84 crore in compensation following the termination of the Kochi Tuskers Kerala franchise from the Indian Premier League (IPL), as per ESPNcricinfo. As per the court's ruling, the BCCI must pay Rs 385.50 crore to Kochi Cricket Private Limited (KCPL) and Rs 153.34 crore to Rendezvous Sports World (RSW), the two stakeholders of the now-defunct franchise. Kochi Tuskers Kerala competed in just one IPL season, in 2011, finishing eighth out of ten teams. The franchise was terminated by the BCCI in September that year for allegedly breaching contractual terms by failing to furnish a bank guarantee within the specified timeframe. This led to a lengthy legal battle, culminating in arbitration, which ultimately went in favour of KCPL and RSW. The team, captained by Sri Lanka's Mahela Jayawardene, registered six wins and eight losses during their sole campaign. The squad featured high-profile players including New Zealand's Brendon McCullum, legendary Lankan spinner Muttiah Muralitharan, and Indian all-rounder Ravindra Jadeja. 'The jurisdiction of this Court under Section 34 of the Arbitration Act is very limited,' Justice Riyaz I. Chagla said in his order, as quoted from ESPNcricinfo. 'BCCI's endeavour to delve into the merits of the dispute is in teeth of the scope of the grounds contained in Section 34 of the Act. BCCI's dissatisfaction as to the findings rendered in respect of the evidence and/or the merits cannot be a ground to assail the Award,' he added. 'The conclusion of the learned Arbitrator namely that BCCI had wrongfully invoked the bank guarantee which amounted to a repudiatory breach of the KCPL-FA would call for no interference under Section 34 of the Arbitration Act considering that this is based on a correct appreciation of the evidence on record,' he noted. Six weeks of time have been granted to the BCCI to file an appeal. (ANI)
