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Informist, Monday, Jul. 13, 2026

 

--SpiceJet to HC: Will deposit INR 500 million in 45 days in Maran case 

--CONTEXT: SpiceJet has to deposit INR 1.45 bln in Maran arbitration case 

--SpiceJet to HC: Will deposit remaining amount in 90 days in Maran case 

--HC allows SpiceJet time to deposit money in Maran case, to hear Sept 3

 

NEW DELHI – SpiceJet Ltd. Monday said it will deposit INR 500 million in 45 days and the remaining INR 950 million with the Delhi High Court's registry in an arbitration dispute with Sun Group Founder Kalanithi Maran and KAL Airways Pvt. Ltd. Allowing SpiceJet to deposit the amount, the high court said it will hear the case on Sept. 3 after the initial amount is deposited to see how to proceed with the litigation. 

 

 

SpiceJet's counsel Mukul Rohatgi informed the court that it had received some amount from the government through the emergency credit programme for the airlines to partly cushion them from the severe operational turmoil caused by the recent West Asia conflict. Noting that it will receive the latter amount in some time, Rohatgi said it will deposit INR 1.45 billion with the court's registry in 90 days. 

 

In May, the Supreme Court had asked the Delhi High Court to decide SpiceJet Ltd.'s plea seeking to submit a title deed of an immovable property with the court's registry instead of depositing INR 1.45 billion, or give three more months to deposit the amount. Following the apex court's order, SpiceJet moved the high court again, which had twice rejected its prayer for submitting the title deed and seeking more time to deposit the amount. Advocate Mukul Rohatgi, appearing for SpiceJet, had earlier said if the request for title deed or extension is not accepted, the airline will have to close down. There are only three airlines left with SpiceJet being the smallest of the lot, said Rohatgi, adding that private interest must yield to public interest sometimes. 

 

Maran and KAL Airways had argued that SpiceJet owed over INR 4 billion, including interest, far higher than the INR 1.45 billion figure cited by the cash-strapped airline. Maran and KAL Airways had said the interest was not being calculated properly in SpiceJet's books.

  

In February 2015, 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. Following the 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 tribunal awarded a refund of INR 5.79 billion, along with interest, to be paid by SpiceJet to Maran and KAL Airways. Thereafter, both parties moved the Delhi High Court's single-judge bench, which upheld the award in 2023. When the case reached the division bench, it found merit in SpiceJet's contention and remanded the matter back to the single-judge bench for fresh consideration.

 

In January, the high court had said in 2023, the top court had asked SpiceJet to encash its bank guarantee and pay 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 three years after the order, the court noted.

 

At 1154 IST, the shares of SpiceJet Ltd. were down 2.9% at INR 11.06 on the BSE.  End

 

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

 

Reported by Surya Tripathi

Edited by Deepshikha Bhardwaj

 

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