Sibal, Singhvi, Kuhad, Sethi appear in Spicejet v Kalanithi Maran before Delhi High Court

A Single Bench of the Delhi High Court has directed SpiceJet Ltd to pass a board resolution for the purpose of transferring shares to erstwhile shareholder of the airlines, Kalanithi Maran and his KAL Airways Ltd..Justice Manmohan Singh, while hearing the plea of Maran & KAL Airways, also directed SpiceJet to submit a copy of the proposed resolution that shall be passed in favor of Maran; pursuant to which a protective order will be passed by the Bench on Monday..Last year, Maran & KAL had transferred 58.4% of their shares in SpiceJet to co-founder of the airline, Ajay Singh. This deal also stipulated that both sellers (Maran & KAL) were entitled to receipt of redeemable warrants in return for the amount of 700 crores that they had spent on SpiceJet towards operating costs and debt payment..Senior Advocates Kapil Sibal and Abhishek Manu Singhvi appearing for Maran & KAL Airways submitted that as per the terms of the agreement between both parties, Maran was also supposed to make a fixed deposit of 100 crore rupees which was duly performed..However, Sibal argued that SpiceJet failed to inform the petitioners that they had received consent from the concerned banks over the money and due to this misinformation, the petitioners could not deposit the 100 crores..“Today I want nothing more but a direction from the Bench, injuncting them from transferring my shares to anyone else or creating third party interest and rights.”.Senior Advocates Paras Kuhad and Sandeep Sethi, who appeared for the Respondents, argued that the issue of transferring shares to anyone else did not arise as this was possible only after a board resolution is passed..They further submitted that they would not ‘shy away’ from effecting the share transfer provided that the necessary statutory approvals are secured by Maran & KAL..The case will now be heard on March 14.