Maran and his KAL Airways had filed a suit against SpiceJet in the high court earlier this year, demanding the conversion and transfer of 180 million redeemable stock warrants into equity shares, according to a 2014 resolution made by the firm. The Delhi High Court heard submissions in the Kalanithi Maran–SpiceJet stock warrant issue on Wednesday.
The Delhi High Court prevented the airline from diluting its promoter shares and restrained it from creating any third party rights. While giving partial relief to Kalanithi Maran, Justice Manmohan Singh said that BSE was acting under the “influence” of SpiceJet. “We were given the impression that warrant issue is only a matter of procedure. But warrant issue is now stuck in back and forth between the parties.”
The High Court told SpiceJet to file its reply to the proposal regarding return of the funds already paid to it by Maran, who has sought a refund of Rs.690 crore that was paid by him and KAL Airways during transfer of ownership of SpiceJet Ltd to Ajay Singh in 2015.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.
BSE told the court that it cannot allow resolution for warrant issue considering the current rules and Sebi too rejected the possibility of it making an issue in favour of Maran and KAL as the rules don’t permit relaxation of norms for individual cases. The judge posted the matter for further hearing on May27.