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A Single Bench of Justice Manmohan Singh today reserved its order in the ongoing dispute regarding transfer of shares between SpiceJet Airways and its erstwhile founder Kalanithi Maran.
Justice Singh who has been hearing the case for over three months now, had earlier expressed his doubts over the means by which SpiceJet was to secure the shares due to its former founder/owner, Maran.
The genus of the dispute arose last year when Maran & KAL had transferred 58.4% of their shares in SpiceJet to co-founder of the airline, Ajay Singh. This deal also stipulated that both sellers (Maran & KAL) were entitled to receipt of redeemable warrants in return for the amount of 700 crores that they had invested in the airlines for operating costs and debt payment.
Senior Advocates Kapil Sibal and Abhishek Manu Singhvi appearing for Maran & KAL Airways had then submitted that as per the terms of the agreement between both parties, Maran was also supposed to make a fixed deposit of 100 crore rupees which was duly performed. However, Sibal argued that SpiceJet failed to inform the petitioners that they had received consent from the concerned banks over the money and due to this misinformation, the petitioners could not deposit the 100 crores.
Previously, the Bench had directed SpiceJet to pass a board resolution that would enable transfer of shares to Maran. However the Court had also said that the application of Maran made to BSE, for issuance of redeemable warrants worth 18 crore rupees, shall be considered by the body after the resolution is passed. Maran’s counsel had earlier requested BSE for a time period of two weeks for consideration of the said application after the board resolution has been passed.
SEBI had also informed the Bench earlier this month that it could not pass a resolution for the purpose of transferring the warrants in favor of Maran.