SpiceJet Ltd., a low-cost airline, denied on Tuesday the allegations made by KAL Airways and Kalanithi Maran, who were requesting damages totaling Rs. 1,323 crore. "These assertions are not only legally untenable but also a regurgitation of previously rejected claims by the Arbitral Tribunal and then the Delhi High Court," the airline said.
SpiceJet stated that during the arbitration process, KAL Airways and Maran first requested damages totaling more than Rs 1,300 crore. It further said that a group of three former Supreme Court judges had carefully considered and rejected this allegation.
"KAL Airways and Kalanithi Maran then filed an appeal with the Delhi High Court's Single-Judge Bench, requesting the same sum in damages, but the court once more dismissed their request. Interestingly, they decided not to file an appeal with the appellate authority, and as a result, the case became final. The carrier emphasized, "This problem is without basis and seems to be an attempt to sensationalize the situation and mislead the public.
On May 17, 2024, the Delhi High Court's Division Bench rendered a decision that supported SpiceJet and Ajay Singh. After winning the case before the Delhi High Court's Division Bench, SpiceJet will now seek the reimbursement of Rs 450 crore as specified," the statement continued.
In their ongoing battle, KAL Airways and Maran have declared that they will sue SpiceJet and its CEO, Singh, for more than Rs 1,323 crore in damages. They will also be contesting the latest Delhi High Court ruling.
In terms of individual stocks, SpiceJet was last seen trading at Rs 57.67, down 1.03%. As of the time this report was written, almost 7.31 lakh shares had changed hands. The amount was less than the 28.62 lakh share two-week average. With a market capitalization (m-cap) of Rs 4,512.41 crore, the counter saw turnover of Rs 4.23 crore.
SpiceJet's securities are now covered by the long-term ASM (Additional Surveillance Measure) framework, according to the BSE and NSE. Exchanges warn investors of significant share price volatility by placing equities in either short-term or long-term ASM frameworks.
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