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Informist, Monday, Sept. 28, 2026

 

NEW DELHI – SpiceJet Ltd. Monday sought more time from the Delhi High Court to deposit INR 1.45 billion in the court's registry in an arbitration dispute with Sun Group founder Kalanithi Maran and KAL Airways Pvt. Ltd. The airline has also offered a property to be attached for securing the amount in the case. The high court has reserved its order on SpiceJet's application seeking more time and offering a property for attachment.

 

SpiceJet said that the recent West Asia conflict had an effect on the operations of the airline. It said it has not received the second tranche from the government through the emergency credit programme for airlines to partly cushion them from the severe operational turmoil caused by the West Asia war. It is a running airline, with staff on payroll and wants to continue to operate, SpiceJet said, requesting for more time to deposit the entire amount.

 

Maran and KAL Airways contested SpiceJet's request and sought attachment of the airline's assets for payment of money. Maran and KAL Airways said no funds had come from SpiceJet and the airline has repeatedly, by one or other means, sought extension for paying the money. 

 

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 Supreme 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. 

 

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

 

On Monday, shares of SpiceJet Ltd. ended 2.4% lower at INR 9.61 on BSE.  End

 

Reported by Surya Tripathi

Edited by Avishek Dutta

 

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