Kal Airways Pvt. Ltd vs M/S Spicejet Ltd. & Anr on 24 February, 2023

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Delhi High Court - Orders

Kal Airways Pvt. Ltd vs M/S Spicejet Ltd. & Anr on 24 February, 2023

1. The present enforcement proceedings are in respect of an award dated 20.07.2018. The judgment debtors carried the matter to the Supreme Court against an order dated 02.09.2020 passed in these proceedings and an order dated 15.10.2020 passed in review proceedings.

2. The Supreme Court has disposed of the appeals filed by the Signature Not Verified Digitally Signed By:SHITU NAGPAL Signing Date:24.02.2023 19:24:27 OMP (ENF.) (COMM.) 31/2019 & Connected Matters Page 1 of 3 judgment debtors [Civil Appeal Nos. 1064-1065/2023 and 1066- 1067/2023] by an order dated 13.02.2023. In the aforesaid order, the Supreme Court has directed as follows:-

"15 Hence, we direct as follows :

(i) The bank guarantee shall be encashed immediately and the proceeds shall be payable to the respondent-decree holder within two weeks. This will ensure that quantum of the principal sum due in the award is paid over in its entirety;

(ii) The appellant shall, within a period of three months, pay an amount of Rs 75 crores to the respondent towards the liability on account of interest pending the disposal of the petition under Section 34;

((iii) In the event that the appellant defaults in complying with the above direction for payment or any part thereof, the award shall become , executable forthwith in its entirety."

3. Learned counsel for the parties are ad idem that the bank guarantee referred to in the order of the Supreme Court is a bank guarantee furnished pursuant to order of the Division Bench in FAO(OS)(COMM) 61-62/2016 [Ajay Singh vs. Kal Airways Private Limited & Ors. and Spicejet Limited vs. Kal Airways Private Limited & Ors.s]. It is undisputed that the bank guarantee, which is now lying in this Court, is for the sum of ₹2,707,810,539/- [Bank Guarantee No. 066GM03172550001 dated 14.03.2022, valid upto 31.03.2023] issued by Yes Bank Limited, South Extension-II Branch, New Delhi.

4. Ms. Nandini Gore, learned counsel for the decree holders- Kal Airways Pvt. Ltd. and Mr. Kalanithi Maran, states, upon instructions, that the proceeds may be released in favour of Kal Airways Pvt. Ltd. Mr. Atul Sharma, learned counsel for the judgment debtors, states that he has no objection to the encashment of the bank guarantee and payment of the proceeds thereto to the decree holder i.e. Kal Airways Pvt. Ltd.

Signature Not Verified Digitally Signed By:SHITU NAGPAL Signing Date:24.02.2023 19:24:27 OMP (ENF.) (COMM.) 31/2019 & Connected Matters Page 2 of 3

5. In view of the above and in accordance with the directions of the Supreme Court in order dated 13.02.2023, the Registry is directed to encash the Bank Guarantee No. 066GM03172550001 dated 14.03.2022, furnished by Yes Bank Limited. The proceeds will be made over to learned counsel for the decree holders, upon her furnishing an affidavit of both the decree holders to the effect that the proceeds should be released in favour of Kal Airways Pvt. Ltd.

6. In view of the directions of the Supreme Court in the aforesaid order, the Registry is directed to take expeditious steps. List before the learned Registrar General for compliance on 03.03.2023. In the event of any difficulty, the matter may be referred back to the Court.

7. In view of the remaining directions contained in paragraph 15 of the order of the Supreme Court, the present proceedings have to be listed after three months from the date of the said order i.e. 13.02.2023. List before the Court on 22.05.2023.

PRATEEK JALAN, J FEBRUARY 24, 2023 'pv'/ Signature Not Verified Digitally Signed By:SHITU NAGPAL Signing Date:24.02.2023 19:24:27 OMP (ENF.) (COMM.) 31/2019 & Connected Matters Page 3 of 3

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Delhi High Court - Orders