SpiceJet, Maran To Agree On Mediation After SC Consideration

In order to resolve a protracted share transfer issue, the Supreme Court announced on Tuesday that it would take into account a joint plea for mediation from SpiceJet Ltd. and Kalanithi Maran. The latter suggested mediation as a way to resolve the conflict, while SpiceJet agreed to this. The airline suggested that a retired judge be appointed to serve as a mediator between the parties.

Senior counsel for SpiceJet, Mukul Rohatgi, informed the court that three topics needing in-depth discussion are part of a complete solution that both SpiceJet and Maran are attempting. One of the three issues, according to Rohatgi, is the one raised by this situation. There are two other problems that are unrelated to the current situation. The opposing party is eager to resolve all three issues at once. One of the two outside difficulties pertaining to this topic was resolved on July 29."

Rohatgi said that SpiceJet had previously agreed to the release of the security deposit supplied by Maran and the other respondents in exchange for a loan from City Union Bank. "The security will be released as a result of our settlement with the lender," he explained.

The prosecution of the respondents (Maran and others) for the tardiness in submitting tax deducted at source is another unresolved matter between the parties. According to Rohatgi, SpiceJet is collaborating with the respondents to submit a motion to dismiss the case. Rohatgi asked the court to relist the case after four to six weeks so that all of the issues could be resolved.

The attorney for Kalanithi Maran, Vikas Singh, requested that the settlement discussions be submitted to the Hyderabad mediation centre for resolution. Rohatgi consented to the idea on Singh's behalf. Both Singh and Rohatgi urged that the matter be submitted to mediation when a court led by Chief Justice N V Ramana asked if an arbitrator should be appointed.

SpiceJet proposed to pay 600 crore as a complete and final resolution of all claims between the parties in March. The top court had requested Maran to take SpiceJet's offer into consideration after hearing from both parties.