Delhi High Court today asked budget airline Spicejet to pass a board resolution for issuing stock warrants to Sun group Managing Director Kalanithi Maran and his Kal Airways Pvt Ltd as per a sale purchase agreement of 2015 which led to change in ownership of the carrier.
Justice Manmohan Singh asked both sides to come with the draft terms they are agreeable to and then he would pass orders on the petition moved by Maran seeking a stay on transfer of any shares of the airline.
The matter has been listed for orders on March 14.
Maran and his airline, Kal, have alleged in their plea that despite giving around Rs 579 crore to Spicejet, the carrier failed to issue them the warrants or allot them tranche 1 and 2 of Convertible Redeemable Preference Shares and the amount was not utilised for paying statutory dues.
Spicejet, refuting these allegations, claimed that the warrants can be issued only after approval is received from Bombay Stock Exchange (BSE).
It also said there was no fear of transferring shares to a third party or to Maran as the shares have not yet been issued by the company.
It further said that the change of ownership was effected as a rehabilitative measure to address the liability of Rs 2,000 crore incurred by the airline while under the management of Maran.
Spicejet, now under the helm of its co-founder Ajay Singh, also claimed that every penny has been utilised towards operations and discharge of liabilities.
Under the 2015 sale purchase agreement, Maran and Kal transferred their entire 350,428,758 equity shares (58.46 per cent stake) in the airline, to Ajay Singh.
As per the deal, they were to receive the redeemable warrants in return for around Rs 679 crore that they were to give to the airline towards operating costs and debt payment, the petition claimed.