The Delhi High Court on Monday issued notice to SpiceJet Ltd and its Chairman and Managing Director Ajay Singh in Kal Airways and its promoter Kalanithi Maran’s application seeking urgent hearing of its enforcement petition in a case where the former is to pay approximately Rs 390 crore to it towards its interest liability under the arbitral award.
Allowing the application, a bench of Justice Yogesh Khanna directed SpiceJet and its CMD to file an affidavit disclosing all their assets before the next date of hearing, September 5, and also mandated the physical presence of Ajay Singh before it.
The Supreme Court had, on February 13, directed SpiceJet to pay Rs 75 crore to decree holder (Kal Airways and Maran) within a period of three months towards its interest liability under the arbitral award, and had also clarified that in the event of failure to pay, the entire award would become executable in entirety in favour of decree holder.
On the applications seeking further time extension that were moved by SpiceJet for two more months as the three months time period had expired on May 13, and it failed in honouring the top court’s order, senior advocate Maninder Singh, appearing for the decree holder, informed the court that the apex court order of February 13 has been now reaffirmed by another order dated July 7, whereby the time applications of SpiceJet are also dismissed.
The apex court, while dismissing the same, observed that the SpiceJet’s application is nothing but a delay tactic to not pay money even when there are court orders directing the same.
Singh told the high court that SpiceJet is not honouring the orders passed by any of the courts, and has earlier too failed to comply with the order passed by this court dated November 4, 2020, directing the airlines to file its affidavit of disclosure of its assets. It was also reaffirmed by order dated May 29 by this court and the same is not filed till date, he apprised the court.
He submitted before Justice Khanna’s bench that Order XXI Rule 41 (iii) of Code of Civil Procedure clearly provides that the court may, for a period not exceeding three months, pass an order of arrest of the Judgement Debtor for not complying with the order to file affidavit of assets.
Following the top court’s order dated February 13, the high court had on May 29, directed SpiceJet and Ajay Singh to pay the entire executable amount under the award to the decree holder.
“Since the judgement debtor had failed to pay an amount of Rs 75 crore to decree holder, hence in terms of para 15(ii) of the order dated February 13 of the Hon’ble Supreme Court, there is no other alternative except to call upon the judgement debtors to deposit the entire outstanding amount qua interest forthwith.”
On the other hand, appearing for SpiceJet and Ajay Singh, senior advocate Sandeep Sethi submitted that there is no reason for allowing early hearing at this stage and the matter can be taken up on September 5, which is the fixed date.
The judge then observed that the decree holder is not left with any other option but to move an early hearing application as the judgement debtor is not complying with the orders passed by the courts and should have filed its affidavit of disclosure of assets till date. The court observed that admittedly the affidavit of disclosure of assets is not filed by judgement debtor despite directions of this court given twice.
In this circumstance, the judge directed that notice be given to SpiceJet in view of sub- Rule 3 of Rule 41 of O 21 and that the Managing Director of SpiceJet be present in person in court on next hearing and answer the court.
Senior advocate Sethi with advocate Atul Sharma appeared on behalf of SpiceJet Ltd and Ajay Singh. Senior advocate Maninder Singh, instructed by senior partner Nandini Gore, principal associate Sonia Nigam, associate Yash Dubey and associate advocate Akarsh Sharma from Karanjawala & Co. appeared on behalf of the Kal Airways Pvt Ltd and Kalanithi Maran.
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