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<\/p>\nThe Supreme Court has appointed its former judge P V Reddi to mediate the dispute between SpiceJet and its former promoter Kalinithi Maran, the airline said on Wednesday.<\/p>\n
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The dispute dates back to 2015, when Maran sold his stake in SpiceJet of 58.46 per cent, or 50.4 million shares, to Ajay Singh for Rs 2 after the airline suffered financial trouble.<\/p>\n
A year later, Maran approached the Delhi high court, alleging a breach of agreement by Singh for not issuing him 189 million share warrants and preference shares despite Maran’s Rs 679-crore infusion.<\/p>\n
He claimed Rs 1,300 crore from SpiceJet and Singh.<\/p>\n
In July 2016, the High Court asked Maran and Singh to set up an arbitration tribunal.<\/p>\n
The tribunal—consisting three retired judges of the Supreme Court—rejected Maran and his firm KAL Airways’ claims for damages in 2018.<\/p>\n
In September 2020, the Delhi High Court asked Spicejet to pay Rs 243 crore to Maran.<\/p>\n
The Supreme Court stayed the order in November 2020 after hearing petitions filed by SpiceJet.<\/p>\n
Last month, both sides told the Supreme Court they want an amicable settlement.<\/p>\n
So, on August 16, the Supreme Court ordered mediation in the dispute, asking the Hyderabad Mediation Centre to look into settlement talks.<\/p>\n
On Wednesday, SpiceJet said in a statement, “Retired Supreme Court Judge, Hon’ble Mr Justice P V Reddi, has been appointed as a mediator in the dispute between SpiceJet and its former promoter Kalanithi Maran and his firm KAL Airways.”<\/p>\n
The Supreme Court ordered the appointment of Justice (Retd) Reddi on a joint request by both parties that they may be referred to mediation with a view to exploring an amicable settlement between them so that the matter may come to an end soon, it mentioned.<\/p>\n
“The two parties have been directed to approach the learned mediator at the earliest,” it stated.<\/p>\n
SpiceJet has been making losses the past four years.<\/p>\n
Moreover, it is currently operating less than 50 per cent flights, following the July 27 order of the aviation regulator in the wake of a spate of incidents.<\/p>\n
Singh had, on August 31 this year, said that the airline will shortly be engaging with investment bankers to raise up to $200 million.<\/p>\n
SpiceJet incurred net losses of Rs 316 crore, Rs 934 crore, Rs 998 crore and Rs 1,725 crore in FY19, FY20, FY21 and FY22, respectively.<\/p>\n