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The Delhi High Court has granted SpiceJet four additional weeks to deposit INR 144 crore in its ongoing dispute with Kalanithi Maran and KAL Airways. The airline's request to submit property worth about INR 148 crore instead of cash was rejected. SpiceJet cited liquidity pressure due to reduced operations on Gulf routes amid West Asia tensions. The case stems from a 2015 share transfer deal and has seen multiple legal proceedings, with courts consistently directing the airline to comply with monetary obligations.
The Delhi High Court has granted SpiceJet more time to deposit INR 144 crore in an ongoing legal dispute, while refusing its request to submit immovable property as a substitute for the cash requirement. Advertisement
The airline had approached the court seeking relief from the earlier timeline and proposed depositing title deeds of a property valued at around INR 148 crore. It informed the court that this arrangement could serve as security while it manages its cash flow situation. However, the court did not accept this proposal and maintained that the deposit must be made in monetary form.
During the hearing, SpiceJet stated that it was facing liquidity pressure, though it clarified that it was not financially distressed. The airline pointed out that its operations had been impacted due to external factors, including reduced connectivity to Gulf destinations. It explained that a significant portion of its flights to West Asia had been affected due to ongoing regional tensions, leading to revenue loss and operational challenges.
The court took note of these submissions but did not find sufficient grounds to allow a deviation from its earlier order. It also observed that the Supreme Court had already declined to interfere in the matter earlier, reinforcing the requirement for a cash deposit.
The dispute is linked to a 2015 share transfer agreement under which Kalanithi Maran and KAL Airways transferred a 58.46% stake in SpiceJet to Ajay Singh. Disagreements later arose over the issuance of warrants and preference shares, which led to arbitration proceedings.
An arbitral tribunal had earlier rejected claims for damages made by Maran but directed SpiceJet to refund INR 579 crore along with applicable interest. Since then, the matter has seen several rounds of litigation, mainly focused on enforcement of the financial award.
In earlier proceedings, the Supreme Court had directed SpiceJet to make payments in phases and stressed the importance of complying with financial commitments. The airline has already deposited INR 50 crore, while the remaining INR 144 crore is subject to the current court order.
With this extension, the court has provided limited relief in terms of time but has clearly reiterated that the payment must be completed as directed, without any alternative arrangements.
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