In a jolt to low-cost airlines SpiceJet, the Supreme Court on Friday, July 7, refused to extend the time for making payment to media baron Kalanidhi Maran and his Kal Airways in pursuance of an arbitral award of Rs 578 crore related to a share-transfer dispute, saying these are “luxury” litigations.
While refusing to extend the time, the Delhi High Court had on June 1 directed SpiceJet to deposit “forthwith” Rs 75 crore that has to be paid to Maran and his Kal Airways towards interest on the arbitral award.
Prior to this, the top court had ordered that the bank guarantee of Rs 270 crore furnished by SpiceJet to Maran and his firm must be encashed immediately if the airlines failed to pay Rs 75 crore towards interest on the arbitral award by May 13.
A Bench of Chief Justice DY Chandrachud and Justice PS Narasimha on Friday did not accept the vehement submissions of senior advocate Mukul Rohatgi, appearing for SpiceJet, and refused to extend the time, saying the entire award has now become executable.