Kal Airlines refutes claims of settlement talks with SpiceJet

Kal Airlines on Monday rejected the claims of SpiceJet to have reached a settlement through discussions with Kalanithi Maran and his firm.

The Kal airlines, in a statement, said that it has come to its knowledge that a statement purportedly issued by the spokesperson of SpiceJet Ltd has been circulating among certain sections of the media that SpiceJet Ltd is in talks with Kalani Pvt. Ltd. for an amicable settlement.

“We deny the same and state that there is no question of an amicable settlement with SpiceJet Ltd in view of the matter having reached finality by virtue of the order dated July 7, 2023 of the Supreme Court of India. We hope that SpiceJet Ltd will comply with the orders of the Honourable Supreme Court of India and pay us the interest amount of Rs. 386 crore forthwith,” an airlines spokesperson said.

Reacting on Kal airlines statement, the SpiceJet spokesperson said that the payment of Rs 380 crore as directed to be paid by the Supreme Court in the matter relating to Kalanithi Maran and his firm Kal Airways is only a security deposit amount arising from execution proceedings.

“The final amount to be paid by either side will be determined by the High Court of Delhi in the proceeding pending under Section 34 of the Arbitration Act. Orders in this petition have been reserved on 18 April, 2023 and are awaited,” the airlines spokesperson said.

“We would also like to clarify that SpiceJet had in May 2023 approached the Supreme Court seeking an extension for paying Rs 75 crore but the matter was only listed on July 7. The Hon’ble Courts’ proceedings and orders are held in the highest esteem by the company. In the larger interest, we remain committed to finding an amicable settlement in this matter,” the spokesperson added.  

On July 7, an apex court bench of Chief Justice D.Y. Chandrachud and Justice P.S. Narasimha, stated that SpiceJet's application was merely a delay tactic to avoid payment, despite the court's orders and emphasised the importance of following court orders, especially in commercial matters.

In February, the apex court had directed SpiceJet to pay Rs 75 crore to Kal Airways and Kalanithi Maran within three months for its interest liability under an arbitral award. The court had explicitly stated that failure to make the payment would result in the entire award becoming executable in favor of the decree holders.