The Division Bench, consisting of Justice Yashwant Varma and Justice Ravinder Dudeja, overturned the single bench's July 2022 order and upheld the Arbitral Award dated July 20, 2018, issued by a tribunal of three retired Supreme Court Judges.
However, the court didn't stay the arbitral award and allowed the appeal to be restored under Section 34 of the Arbitration and Reconciliation Act 1996.
SpiceJet and Ajay Singh had appealed to the Division Bench against the single judge's directive to refund over ₹270 crore to Kalanithi Maran and Kal Airways.
The single bench, led by Justice Chandra Dhari Singh, had, on July 31 of the previous year, upheld the Arbitral Award in a section 34 Petition.
The Arbitral Award mandated that Kal Airways and Kalanithi Maran receive a refund of ₹308 crore for Warrants and ₹270 crore for Cumulative Redeemable Preference Shares (CRPS).
The Division Bench of the Delhi High Court accepted an appeal by SpiceJet and its Chairman and Managing Director (CMD), Ajay Singh, challenging a single bench's order to refund over ₹270 crore to Kalanithi Maran, Sun Group promoter, and Kal Airways, on Friday.
The Division Bench, consisting of Justice Yashwant Varma and Justice Ravinder Dudeja, overturned the single bench's July 2022 order and upheld the Arbitral Award dated July 20, 2018, issued by a tribunal of three retired Supreme Court Judges.
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Kal Airways and Kalanithi Maran had also filed a section 34 Petition, seeking to overturn the award for not granting interest on the ₹270 crore and for damages due to the non-issuance of Warrants and CRPS.
However, the court didn't stay the arbitral award and allowed the appeal to be restored under Section 34 of the Arbitration and Reconciliation Act 1996.
The restoration of the appeal under Section 34 means that while the previous decision has been nullified, there's now an opportunity for a fresh review of the case considering all aspects.
SpiceJet and Ajay Singh had appealed to the Division Bench against the single judge's directive to refund over ₹270 crore to Kalanithi Maran and Kal Airways.
The single bench, led by Justice Chandra Dhari Singh, had, on July 31 of the previous year, upheld the Arbitral Award in a section 34 Petition. The Arbitral Award mandated that Kal Airways and Kalanithi Maran receive a refund of ₹308 crore for Warrants and ₹270 crore for Cumulative Redeemable Preference Shares (CRPS).
Additionally, the award granted Kal Airways and Kalanithi Maran an interest rate of 12 percent for Pendente lite and 18 percent from the due date if SpiceJet and Ajay Singh failed to make the payments within two months from the award date.
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SpiceJet and Ajay Singh had filed section 34 Petitions to challenge the Arbitral Award, specifically the directive to refund ₹270 crore to Kal Airways and Kalanithi Maran. They also sought to waive the 12 percent interest on warrants and the 18 percent interest on both warrants and CRPS.
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