SpiceJet CMD, complainant settle shares transfer dispute, HC told

The Delhi High Court was on Thursday informed that low-cost airline SpiceJet's Chairman and Managing Director Ajay Singh and a Delhi businessman have come into terms with settling a dispute between them regarding the shares.

The case revolves around an allegation by the businessman and his family that they had entered into a share purchase agreement with Singh, paid Rs 10 lakh for 10 lakh shares, but did not receive them.

The court was informed that they were finalising the terms of the settlement agreement.

Counsel for both Singh and the complainant told the high court that they would place the same before the court in the first week of October.

The matter is now listed for further consideration on October 4.

On September 5, the court had deferred the bail hearing for Singh since the settlement talks were underway between him and the complainant.

The complainant has also alleged that Singh had provided outdated and invalid DIS (delivery instruction slips).

Justice Dinesh Kumar Sharma had asked Singh to settle the dispute with complainant.

The development had come as SpiceJet allocated over 48 million shares to nine aircraft lessors to settle outstanding dues of approximately Rs 2.31 billion, as the airline aims to return to full operations.

The judge had also made this oral observation, pointing out that media reports indicated SpiceJet was doing well and encouraged Singh to consider settling the matter.

On September 5, the National Company Law Tribunal (NCLT) had also asked SpiceJet to work towards resolving disputes with the lessors who have initiated insolvency proceedings against the airline. This came during an insolvency plea filed by one of the lessors -- Celestial Aviation Services Limited -- against the low-cost airline. The NCLT noted that all insolvency petitions against SpiceJet have been brought forward by lessors rather than banks or financial institutions.

Consequently, the tribunal encouraged the airline to consider settling with the lessors, stressing that this could be in its best interest.

Last month, a trial court had rejected Singh's anticipatory bail application, citing insufficient grounds for granting relief in light of the overall facts and circumstances of the case and the gravity of the offense. In July, the high court had observed that the allegations of fraud against Singh in the share transfer agreement dispute were serious and encouraged the parties to consider settling.