Top Court Upholds Delhi High Court Direction In SpiceJet-Maran Arbitration Row
Top court upholds High Court direction in prolonged arbitration battle over 2015 stake transfer.
The Supreme Court on Thursday dismissed a plea by SpiceJet Ltd and its chairman Ajay Singh challenging a January 19 order of the Delhi High Court that directed the airline to deposit Rs 144.5 crore in its long-running arbitration dispute with Kalanithi Maran and KAL Airways Pvt Ltd. The top court also imposed costs of Rs 1 lakh on Singh, observing that the matter had been litigated repeatedly over the years.
A bench comprising Justices PS Narasimha and Alok Aradhe declined to interfere with the High Court’s direction, effectively upholding the requirement that the airline deposit the specified amount. The ruling marks the latest development in a protracted legal battle arising from a 2015 share transfer agreement executed when SpiceJet was facing severe financial distress and the risk of suspension of operations.
The dispute traces back to January 2015, when Maran and KAL Airways, then promoters holding a 58.46 percent stake in SpiceJet, agreed under a Share Sale and Purchase Agreement to transfer their entire shareholding to Singh for a nominal Rs 2. The transaction was accompanied by a broader financial arrangement involving the issuance of warrants and cumulative redeemable preference shares, as well as a funding commitment of approximately Rs 450 crore. Differences later emerged over alleged non-performance of obligations under the agreement, leading to arbitration.
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In July 2018, a three-member arbitral tribunal directed SpiceJet and Singh to refund Rs 308.21 crore to Maran and KAL Airways, along with 12 percent annual interest from November 2015. Both sides challenged the award under the Arbitration and Conciliation Act, 1996, while enforcement proceedings continued before the courts. Over the years, the matter has seen multiple interim orders involving deposits, bank guarantees, and partial payments.
In January 2026, the Delhi High Court considered fresh applications by SpiceJet and Singh seeking a stay on the award. The court noted non-compliance with earlier Supreme Court directions and invoked Article 144 of the Constitution, which mandates that all authorities act in aid of the Supreme Court. It also recorded that Rs 194.51 crore remained payable toward interest, of which Rs 50 crore had been deposited. With the Supreme Court now declining to intervene, the High Court’s order directing the Rs 144.5 crore deposit stands reinforced, adding further pressure on the airline in its ongoing financial and legal challenges.
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