New Delhi: Delhi High Court Thursday asked the Bombay Stock Exchange (BSE) and Securities and Exchange Board of India (SEBI) on what decision they have taken with regard to the application of Spicejet and Kalanithi Maran for issuance of stock warrants in the airline to him.
Justice Manmohan Singh issued notice to BSE and SEBI asking them to inform him on April 26 "outcome of decision, if taken, in view of order passed on March 14" by the court.
The order was passed after the lawyers for Spicejet and Maran told the court that so far no decision has been taken by BSE and SEBI and the time of two weeks given by the judge has already expired.
The court on March 14 had asked BSE to decide the application for issuance of stock warrants within two weeks of filing of the requisite paperwork by the airline.
The March 14 interim order was issued on a plea of Sun group head Kalanithi Maran claiming that he and his KAL Airways were to be issued stock warrants in Spicejet by the airline under a 2015 sale purchase agreement (SPA) which led to change in ownership of the budget carrier.
Maran had sought that the warrants be issued in terms of an application made to BSE on September 18, 2014 and which had been approved by company's board on September 24, 2014.
The judge in his order had said, "I am of the view that at present, there is no impediment if BSE may consider application of September 18, 2014, in light of change of circumstances, because of the reason that earlier respondent 1 (Spicejet) did not provide clarification and now since clarification is available coupled with subsequent events, application dated September 18, 2014 can be considered by BSE."
Under the 2015 SPA, Maran and KAL had transferred their entire 350,428,758 equity shares (58.46 per cent stake) in the airline, to Ajay Singh.
According to the SPA, Maran and KAL were to receive the
redeemable warrants in return for around Rs 679 crore that they were to give to the airline towards operating costs and debt payment, the petition has claimed.
Maran and his airline have alleged in their plea that despite giving around Rs 579 crore to Spicejet, the carrier failed to issue them the warrants or allot them tranche 1 and 2 of CRPS shares and the amount was not utilised for paying statutory dues due to which they were also facing prosecution.
Spicejet, refuting these allegations, had claimed that the warrants can be issued only after approval was received from BSE.
It had also said there was no fear of transferring shares to a third party or to Maran as the shares have not yet been issued by the company.
It had further said the change of ownership was effected as a rehabilitative measure to address the liability of Rs 2,000 crore incurred by the airline when it was under the management of Maran.
Spicejet had also claimed that every penny has been utilised towards operations and discharge of liabilities.