India's budget airline SpiceJet told a court that it was "struggling to stay afloat", as it was ordered to make a payment to its former owner over money owed. SpiceJet was forced to pay $70 million plus interest after losing an arbitration action in 2018 involving share transfers from the company's former management to Kalanithi Maran in 2015. Later, Maran sued SpiceJet, alleging that he was yet to get $48 million.
In a Delhi HC hearing on Maran's case demanding the dues, SpiceJet said it was struggling financially. "We are struggling to stay afloat," the airline's lawyer Amit Sibal told the judge.
SpiceJet offered to deposit 750 million rupees within 10 days, but the judge ordered the airline to pay $12 million by Sept 10 and warned it could consider seizing the company's assets to recover the dues, if it fails to comply.
SpiceJet said in a statement it would honour the court order and "make the specified payment within the prescribed time frame."
The directive was issued a few days after the Supreme Court ordered SpiceJet's managing director, Ajay Singh, to appear in court to defend Credit Suisse's assertions that the cpmpany owed some outstanding dues. Both the Delhi High Court case and the Supreme Court case will next be heard on Sept. 11.