The High Court of Delhi has declined to overturn a 2018 arbitration order requiring SpiceJet (SG, Delhi International) to pay former majority proprietor Kalanidhi Maran INR5.79 billion (USD70.1 million) in compensation plus curiosity.

Justice Chandra Dhari Singh was coping with a share switch dispute between SpiceJet and Kalanithi Maran that dates again to 2015 when the present majority proprietor, Ajay Singh, bought back the struggling airline from Maran in a transaction that concerned a considerable capital injection from Maran in change for inventory warrants and convertible redeemable choice shares. While the capital was forthcoming, the promised inventory warrants and convertible redeemable choice shares didn’t materialise, resulting in Maran initiating authorized motion.

A July 2018 arbitration award ordered SpiceJet to pay Maran INR3.08 billion (USD37.3 million) for the undelivered warrants and INR2.7 billion (USD32.7 million) for the choice shares. The tribunal additionally ordered again curiosity be paid at 12% p.a., rising to 18% p.a. if SpiceJet didn’t pay the quantity by a hard and fast date.

SpiceJet ultimately paid the INR3.7 billion and offered a financial institution assure to cowl the excellent INR2.7 billion, however took concern with the curiosity fee orders. However, Maran continued to compound and capitalise the excellent curiosity, with the matter turning into slowed down in a collection of hearings. In late January, legal action by SpiceJet prevented Maran from encashing that financial institution assure however the airline was given two weeks to pony up the money.

“There is nothing in the impugned award to suggest that it suffers from patent illegality, and the findings therein are perverse and will shock the conscience of this court,” stated Singh in his ruling final week. “After consideration of the entirety of the matter, this court does not find any cogent reason to interfere in the impugned award dated July 20, 2018, passed by the arbitral tribunal in the arbitration proceedings initiated between the parties before this court.”

Maran’s pursuit of SpiceJet for overdue curiosity funds culminated within the Supreme Court final month refusing to allow SpiceJet extra time to pay the debt, which stood at INR3.8 billion (USD46 million) in May.

While Maran will get to maintain his INR5.79 billion, final week’s ruling didn’t go all his approach, with Singh upholding a decrease courtroom’s dismissal of his counterclaim for INR13.23 billion (USD160.2 million) in damages over the matter.