Shares transfer case: Delhi HC defers bail hearing for SpiceJet CMD amid settlement talks
Last month, a trial court had rejected Singh's anticipatory bail application, citing insufficient grounds for granting relief in light of the overall facts and circumstances of the case and the gravity of the offense.
New Delhi: The Delhi High Court on Tuesday deferred the bail hearing for low-cost airline SpiceJet’s Chairman and Managing Director Ajay Singh The decision came as settlement talks are underway between the complainant and Singh.
The case revolves around an allegation by a Delhi businessman and his family that they had entered into a share purchase agreement with Singh, paid Rs 10 lakh for 10 lakh shares, but did not receive the shares. It was also alleged that Singh had provided outdated and invalid DIS (delivery instruction slips).
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On Tuesday, a bench of Justice Dinesh Kumar Sharma asked Singh to settle the dispute with the complainant. This development comes as SpiceJet allocated over 48 million shares to nine aircraft lessors to settle outstanding dues of approximately Rs 2.31 billion, as the airline aims to return to full operations.
The judge also made an oral observation that media reports indicated SpiceJet was doing well and encouraged Singh to consider settling the matter. Earlier in the day, the National Company Law Tribunal (NCLT) asked SpiceJet to work towards resolving disputes with the lessors who have initiated insolvency proceedings against the airline. This came during an insolvency plea filed by one of the lessors — Celestial Aviation Services Ltd — against the low-cost airline.
The NCLT noted that all insolvency petitions against SpiceJet have been brought forward by lessors rather than banks or financial institutions. Consequently, the tribunal encouraged the airline to consider settling with the lessors, stressing that this could be in its best interest.
Last month, a trial court had rejected Singh’s anticipatory bail application, citing insufficient grounds for granting relief in light of the overall facts and circumstances of the case and the gravity of the offense. In July, the high court had observed that the allegations of fraud against Singh in the share transfer agreement dispute were serious and encouraged the parties to consider settling.
