Delhi High Court Orders SpiceJet to Deposit Outstanding Interest Amount of Rs. 380 Crores in Kal Airways Case

What is the case about?

• In this case the judgement debtor, M/s SpiceJet Ltd. Has not filed the affidavit of assets as ordered. the judgment debtors were directed to deposit an amount of Rs. 242,93,70,845.56 within three weeks, which was challenged by the judgment debtors before the Supreme Court. 
• The Supreme Court disposed of the appeals, directing the encashment of a bank guarantee and payment to the decree holder. The decree holder further demanded an additional payment of Rs. 75 crores from the judgement debtor within three months.
• The decree holder asserts that because the required deposit of Rs. 75 crores have not been made; the interest liability has grown to Rs. 380 crores.
• The judgement debtor contends that they have already paid the principal amount and have asked the Supreme Court for an extension of time to pay the remaining balance.

Contentions of the Parties: 

• The decree holder claims that by refusing to deposit the sum of Rs. 75.00 crores, the judgement debtor has disobeyed the decision passed by the Apex Court. They insist that the directive must followed by the judgement debtor.
• The judgement debtor claims to have already paid the principal amount and has asked the Supreme Court for further time to pay the outstanding balance. They contend that they shouldn't be required to deposit the remaining sum.

Observations and Decision of the Court:

• The court observes that the Supreme Court's order, has not been modified. The court agrees with the decree holder's argument that the time limit cannot be extended by the court since it was granted by the Supreme Court.
• The court invokes paragraph 15(ii) of the decision of the Apex Court and orders the judgement debtors to deposit the entire outstanding amount regarding interest right away because the judgement debtor failed to pay the amount of Rs. 75.00 crores as instructed.
• It was also held that, the judgement debtor must file the affidavit of assets within four weeks of the order date.