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Synopsis : SpiceJet's stock dipped by 1.03% amid ongoing disputes with KAL Airways and Kalanithi Maran. The budget airline refuted the claims of Rs 1,323 crore damages, stating these were previously dismissed by the Arbitral Tribunal and Delhi High Court. SpiceJet plans to pursue a refund of Rs 450 crore following a favorable ruling.
On Tuesday, budget airline SpiceJet Ltd firmly denied the recent claims by KAL Airways and Kalanithi Maran, who are seeking damages of Rs 1,323 crore. The airline dismissed these claims as legally untenable and a reiteration of previously rejected assertions by the Arbitral Tribunal and the Delhi High Court.
SpiceJet highlighted that KAL Airways and Maran initially sought damages exceeding Rs 1,300 crore during arbitration. This claim was meticulously examined and rejected by a panel of three retired Supreme Court judges. Following this, KAL Airways and Maran appealed to the Single-Judge Bench of the Delhi High Court, which also rejected their claim. They did not appeal further, and the matter attained finality.
In its statement, SpiceJet emphasized, "This matter is devoid of any merit and appears to be an endeavour to sensationalise the issue and mislead the public." The airline noted that the Division Bench of the Delhi High Court ruled in its favor and in favor of Ajay Singh on May 17, 2024. Following this ruling, SpiceJet plans to pursue a refund of Rs 450 crore.
Despite this, KAL Airways and Maran have announced their intention to seek more than Rs 1,323 crore in damages from SpiceJet and its chief, Ajay Singh, while also challenging the recent Delhi High Court order.
On the stock-specific front, SpiceJet was last seen trading 1.03% lower at Rs 57.67, with around 7.31 lakh shares changing hands. This trading volume is significantly lower than the two-week average of 28.62 lakh shares. The turnover was Rs 4.23 crore, giving SpiceJet a market capitalization of Rs 4,512.41 crore.
Additionally, the BSE and NSE have placed SpiceJet's securities under the long-term Additional Surveillance Measure (ASM) framework, a precautionary measure due to high volatility in share prices.
Disclaimer : This article provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
Related Questions
1. What recent claims did SpiceJet Ltd deny and who made these claims?
SpiceJet Ltd denied the recent claims by KAL Airways and Kalanithi Maran, who are seeking damages of Rs 1,323 crore, dismissing these claims as legally untenable.
2. What was the outcome of the initial arbitration and subsequent legal actions regarding the claims by KAL Airways and Maran?
The claims by KAL Airways and Maran for damages exceeding Rs 1,300 crore were rejected by a panel of three retired Supreme Court judges and later by the Single-Judge Bench of the Delhi High Court. They did not appeal further, and the matter attained finality.
3. What did SpiceJet emphasize in its statement regarding the claims?
SpiceJet emphasized that the matter is devoid of any merit and appears to be an endeavour to sensationalise the issue and mislead the public. They also noted that the Division Bench of the Delhi High Court ruled in their favor and in favor of Ajay Singh on May 17, 2024.
4. How did the stock of SpiceJet perform following the announcement of the claims and penalties?
SpiceJet was last seen trading 1.03% lower at Rs 57.67, with around 7.31 lakh shares changing hands. This trading volume was significantly lower than the two-week average of 28.62 lakh shares, with a turnover of Rs 4.23 crore, giving SpiceJet a market capitalization of Rs 4,512.41 crore.
5. What precautionary measure has been taken by the BSE and NSE regarding SpiceJet's securities?
The BSE and NSE have placed SpiceJet's securities under the long-term Additional Surveillance Measure (ASM) framework, a precautionary measure due to high volatility in share prices.
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