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Kalanithi loses Rs 1,323 cr arbitration to regain SpiceJet
New Delhi, July 22 (IANS) An arbitration tribunal has rejected the claim of former Spicejet owner Kalanithi Maran and his company Kal Airways for Rs 1,323-crore as damages from Spicejet.
In a stock exchange filing on Saturday, Spicejet said that the tribunal constituted by the Delhi High Court in 2016 rejected Maran’s claim to damages of Rs 1,323 crore for not issuing warrants to him and KAL Airways, but awarded him a refund of Rs 579 crore with interest.
The tribunal, comprising retired Supreme Court Judges Arijit Pasayat, Hemant Laxman Gokhale and K.S.P. Radhakrishnan ruled on Friday that there was no breach of a share sale and purchase agreement reached between Maran and the current Spicejet promoter Ajay Singh in January 2015.
The tribunal upheld SpiceJet’s defence that it failed to issue the relevant convertible warrants and preference shares due to lack of approval from the authorities concerned.
“The tribunal has held that there was no breach by the company (Spicejet) in pursuing the approval from relevant authority and since the same was not received for reasons not
attributable to the company, it cannot be held to be in breach or be
made liable for damages,” the filing said.
“The tribunal has, however, held that since the warrants/shares cannot be issued any longer, the amount of about Rs 308 crore earlier received by the company as advance towards subscription of warrants is to be refunded to the claimants along with interest of 12 per cent per annum for a period of 30 months.
“Accordingly, no further warrants/shares are required to be issued by the company
to the claimants,” it added.
Following a severe cash crunch suffered by Spicejet in 2015, Maran and his KAL Airways, transferred their 58.46 per cent share in SpiceJet for Rs 2 to Singh, who, as a co-founder of the low-cost carrier, assumed its liabilities.
As part of the agreement, Maran and KAL Airways said they paid SpiceJet Rs 679 crore for issuing warrants and preference shares.
Maran filed a case in the Delhi High Court against Singh and SpiceJet after he said that neither convertible warrants and preference shares were issued nor his money refunded.
The warrants, if converted into equity, would have given Maran and KAL Airways ownership of 24 per cent stake in Spicejet.
“The company will like to clarify that the aggregate principal amount payable,
including the amount of Rs 270 crore towards CRPS (if and when the same becomes
payable) has already been deposited by the company with the Registrar General of the Delhi High Court in September 2017,” Spicejet said.
Singh and his family currently hold 60.25 per cent in SpiceJet.
–IANS
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Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma
World-renowned business tycoon Dr. Abhishek Verma has supported Foodman Vishal Singh’s Hunger-Free World mission. In memory of his mother, Late Veena Verma, who was a 3 term Rajya Sabha MP.
Dr. Verma dedicated a state-of-the-art free permanent shelter for the attendants of patients at KGMU Medical University, Lucknow, under the aegis of Vijay Shree Foundation. His daughter, Nicolle Verma, inaugurated the shelter.
During the event, Foodman Vishal Singh honored Nicolle Verma by presenting her with a memento. Mrs. Nidhi Sharma and Avantika Yadav, associated with the organization, welcomed her with garlands. Following this, Nicolle Verma distributed essential items to the attendants and also handed out fruits. She became emotional remembering her grandmother on her birth anniversary.
On this occasion, she also inaugurated the “Veena Verma Sevalaya” in memory of her grandmother, Veena Verma, to serve the attendants. She expressed, “I feel proud that my family is engaged in nation-building as well as social service. Today, in collaboration with Vijay Shree Foundation founder Foodman Vishal Singh Ji, I feel immensely proud to dedicate this shelter for the poor, helpless, and needy attendants of patients battling serious illnesses like cancer. I am honored to be associated with the Hunger-Free World Mission for humanity.”
Inspired by the continuous humanitarian service provided by Vijay Shree Foundation over the past 17 years, Nicolle Verma donated 10 lakh rupees to support the cause. The purpose of this donation is to ensure that services continue for the needy attendants of patients suffering from severe illnesses in hospitals, as facilitated by Foodman Vishal Singh.
It is noteworthy that Dr. Abhishek Verma’s family has a legacy of public and philanthropic service. They are helping millions to carry forward the values and service work of their parents. On the occasion of his mother’s birth anniversary, Dr. Abhishek Verma dedicated this state-of-the-art permanent shelter at Lucknow Medical College to serve the attendants of patients through the Vijay Shree Foundation.
Supporting Foodman Vishal Singh’s Hunger-Free World mission, Dr. Abhishek Verma assured that he would continually support keeping this flame of humanity alive. He also promised to assist in providing medicines to the helpless patients.
Continuing her grandmother’s legacy of service, Nicolle Verma personally served food to the needy patients and attendants. She said, “It is our good fortune to have received the joy of doing this noble work today through Foodman Vishal Singh. I have taken another step forward in carrying my family’s values and cooperation by joining hands with the Vijay Shree Foundation. My father taught me to serve and help the needy, and I feel happy when I bring a smile to someone’s face.”
On the birth anniversary of the late Veena Verma, the event organizer, Vijay Shree Foundation founder Foodman Vishal Singh, said, “We feel proud and happy that Dr. Abhishek Verma, a globally renowned business tycoon, has extended his support to uplift our country from the hunger index. Today, on his mother’s birth anniversary, he inaugurated a state-of-the-art permanent shelter at Lucknow Medical College, which will always be helpful for the needy attendants of patients. It is a pleasure for me and the organization to receive the affection of Mr. Verma.”
The event was attended by General Manager Verma Family Office Hemant Garg, Sonu Rajput, and the organization’s volunteers, including Sandeep Singh, Parmeshwar Ji, Prashant Rao Gautam, Balram Singh, Ramesh Chaudhary, Suman, Jeetu, Anil, Suraj, Vinay, Manish Bhadauria, Manas Mehrotra, Vivek, Apurv, Happy, and others.