NEW DELHI: Low-cost carrier Spicejet on Thursday offered to pay a total of Rs 600 crore to fully and finally settle its disputes with KAL Airlines and Kalanithi Maran, upping its offer by 25 crore from the principal amount of Rs 578 crore, which KAL claimed to have increased with interest to Rs 1,000 crore.
A Supreme Court bench of Chief Justice N V Ramana and Justices A S Bopanna and Hima Kohli told Spicejet counsel Mukul Rohatgi that the beleaguered airlines’ “credentials are not great” while reminding it of the case relating to dispute over defaulting in payment of $24 million to Credit Suisse. Rohatgi promptly told the court that the payment dispute with Credit Suisse is getting settled and that Spicejet is eager to settle with KAL Airlines and Kalanithi Maran.
Rohatgi said against a principal amount of Rs 578 crore, Spicejet has already paid Rs 308 crore in cash and has given a bank guarantee worth Rs 270 crore, fully covering the defaulted amount. “If KAL Airlines agrees to the settlement, then Spicejet would withdraw the bank guarantee and give Rs 270 crore in cash. The award of 18% interest is illegal and is subject matter of challenge before the High Court. IF they intend to waive off the interest component, we are ready to settle the principal amount immediately.”
