SpiceJet to Comply After Supreme Court Upholds Rs 144 Crore Deposit Order
Supreme Court upholds High Court order in SpiceJet’s arbitration dispute with Maran.
SpiceJet on Friday said it will comply with a Supreme Court directive to deposit ₹144.5 crore in connection with its long-running arbitration dispute with Kalanithi Maran and KAL Airways Pvt. Ltd. The development follows the apex court’s decision to uphold an earlier order of the Delhi High Court directing the airline to make the deposit.
The ruling came after a plea filed by SpiceJet and its chairman Ajay Singh challenging the High Court’s order was rejected by the Supreme Court. A bench comprising Justices P.S. Narasimha and Alok Aradhe declined to interfere with the High Court’s direction and imposed a fine of ₹1 lakh on Singh, observing that the litigation had been repeatedly pursued over the years.
In a statement, SpiceJet said the dispute arose from a share transfer agreement executed in 2015 involving the airline, its promoter Ajay Singh, KAL Airways, and Kalanithi Maran. The transaction took place at a time when SpiceJet was facing acute financial distress and the risk of suspension of operations.
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The airline stated that it has already paid ₹730 crore to Maran and KAL Airways, comprising the entire principal amount of ₹580 crore and ₹150 crore in interest. The remaining ₹144.5 crore, as directed by the court, will be deposited in accordance with the ongoing arbitration process. SpiceJet emphasized that the latest development will have no impact on its day-to-day operations.
SpiceJet further noted that claims exceeding ₹1,300 crore in damages made by Maran and KAL Airways have been rejected and that those orders have attained finality. It added that its own claims seeking a refund of certain amounts paid—estimated at ₹449 crore—are currently being heard by the Delhi High Court, where it said there is a prima facie finding in its favour. The airline expressed confidence in a favorable outcome upon the conclusion of the legal proceedings.
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