New Delhi: Cash-strapped SpiceJon Tuesday offered to submit the title deed of an unencumbered immovable property to the Delhi High Court registry as security instead of depositing ₹144 crore in an arbitration dispute over a share transfer involving former promoter Kalanithi Maran and KAL Airways.
Senior counsel Amit Sibal, appearing for Spicejet, told Justice Subramonium Prasad that the airline has “a liquidity crunch“. “We are not in financial distress. But 40% of our flights, which go to the Gulf, have been cancelled due to war. We have suffered losses,” the counsel said, adding that the immovable property that the airline intends to give as security is valued at ₹148 crore.
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However, Justice Prasad expressed his inability to allow it as the Supreme Court had, on February 27, refused to interfere with the high court’s January 19 order asking the carrier to deposit around ₹144 crore with its registry within six weeks.
