Delhi High Court today directed Spicejet to not issue or transfer its shares to a third party till the next hearing of Sun Group Managing Director Kalanithi Maran’s plea for issuing him stock warrants in the airline as per a sale purchase agreement of 2015 which led to change in ownership of the carrier.
“Till next date of hearing the respondent (Spicejet) is restrained from transferring the shares and issuance of the share,” Justice Manmohan Singh said.
The court gave the interim order after senior advocate Kapil Sibal and Rajiv Nayar , appearing for Maran, claimed that he should be protected till the time warrants are not issued in his favour.
Spicejet opposed it, saying the warrants can be issued only after approval has been received from Bombay Stock Exchange (BSE).
The court, however, observed that some balance has to be struck between the parties.
“You (Spicejet) do not transfer the share,” the court said and asked the carrier to file its reply on the decision taken by the BSE and Securities and Exchange Board of India (SEBI).
Under the sale purchase agreement (SPA), Maran and his KAL Airways had transferred their entire 350,428,758 equity shares (58.46 per cent stake) in the airline, to its co-founder Ajay Singh.
According to the SPA, Maran and KAL 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 has claimed.
Maran and his airline 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 due to which they were also facing prosecution.
Spicejet had earlier told the court that the change of ownership was effected as a rehabilitative measure to address the liability of Rs 2,000 crore incurred by the airline when it was under the management of Maran.
It had also claimed that every penny has been utilised towards operations and discharge of liabilities. Reid Duke Authentic JerseyShare This