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Informist, Friday, Feb. 27, 2026

 

--SC rejects SpiceJet plea vs HC order to deposit INR 1.45 bln in Maran case 

 

NEW DELHI – The Supreme Court Friday rejected SpiceJet Ltd.'s plea against Delhi High Court's Jan. 19 order asking the airline to deposit INR 1.45 billion with its registry within six weeks, in the arbitration dispute with Sun Group founder Kalanithi Maran and KAL Airways Pvt. Ltd. The high court had said that in 2023 the top court had asked SpiceJet to encash its bank guarantee and pay it to Maran and KAL Airways against the principal sum on a 2018 arbitral award and INR 750 million for the remaining interest.

 

However, SpiceJet had failed to fulfil its obligations even after three years of the top court's order, the high court had said. Upholding the high court's order, the apex court questioned SpiceJet how it will justify not paying the amount ordered by it. "Is this a joke or what?" asked a bench of Justice P.S. Narasimha and Justice Alok Aradhe, directing SpiceJet to pay a fine of INR 100,000 for filing the current appeal and not paying the previous ordered amount. The court said it will never see the end of litigation if the fine was not imposed upon SpiceJet. 

 

The case dates back to February 2015, when Maran and KAL Airways transferred their entire 58.46% stake in SpiceJet to co-founder Ajay Singh. Maran later moved the high court accusing SpiceJet and Singh of breaching their agreement by failing to issue him 189 million share warrants and preference shares. KAL Airways is controlled by Maran. After a dispute between the parties, the issue was referred to an arbitral tribunal by the high court.

 

In 2018, an arbitral tribunal rejected Maran and KAL Airways' claim of damages worth INR 13.23 billion against SpiceJet for not issuing warrants to the petitioners. However, the arbitral tribunal awarded a refund of INR 5.79 billion with interest to be payable by SpiceJet to Maran and KAL Airways. Thereafter, both the parties moved the Delhi High Court's single-judge bench, which upheld the award in 2023. When the case reached the division bench, the latter found merit in SpiceJet's contention and remanded the matter back to the single-judge bench for fresh consideration.

 

Maran and KAL Airways argued that SpiceJet must be directed to deposit the amount payable under the arbitral award, as directed by the apex court. SpiceJet was flouting the apex court's order which cannot be permitted, said Maran and KAL Airways. "Accordingly, this court is of the opinion that orders passed by the apex court cannot be left in a limbo, more so for nearly three years after they have been passed," said the high court.

 

At 1437 IST, shares of SpiceJet were up 1.5% at INR 16.14 on the BSE. Earlier in the day, the stock had risen nearly 8% to a high of INR 17.15. The low so far in the session was INR 15.50.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Surya Tripathi

Edited by Ashish Shirke

 

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