Advertisement
In this episode of Prop Personalities, we sit down with Hars...
Luxury real estate is one of the most talked-about segments ...
Welcome to Prop Personalities by Prop News Time - a podcast ...
Airports play a much bigger role than just enabling travel -...
Why does the same hotel brand operate multiple properties in...
The Delhi High Court has reserved its order on SpiceJet and Ajay Singh's plea seeking a review of a directive to deposit INR 144 crore in a dispute with Kalanithi Maran and Kal Airways. The case relates to pending financial obligations from a 2015 ownership transfer. The airline cited financial stress and requested flexibility in payment, while the opposing side argued that dues have already been examined and could exceed INR 400 crore with interest. The court's decision will be important for the airline's financial position.
The Delhi High Court has reserved its order on petitions filed by SpiceJet and its promoter Ajay Singh, who have sought a review of an earlier direction requiring them to deposit INR 144 crore in a dispute with Kalanithi Maran and Kal Airways. The matter was heard by Justice Subramonium Prasad, who decided to defer the ruling after detailed submissions from both sides. Advertisement
The dispute arises from a prior court order issued earlier this year, which directed SpiceJet and Singh to deposit INR 144 crore against an admitted liability of INR 194 crore. The airline had initially been given six weeks to comply with the order, and this timeline was later extended by four weeks after it sought additional time to arrange funds.
During the hearing, SpiceJet informed the court that it is facing financial constraints and requested some flexibility in complying with the payment direction. The airline's counsel submitted that legal provisions do not strictly require a cash deposit and that the obligation could be met through other forms of security such as property, bank guarantees or undertakings. It was also conveyed that grounding the airline due to financial pressure would not be in public interest, and that the company is working on raising funds through asset monetisation and other financial measures.
On the other side, counsel representing Maran and Kal Airways opposed the plea and argued that the issues raised in the review petition had already been examined earlier, including at the Supreme Court level. They maintained that the airline's financial position had been considered previously and cannot be used as a basis to revisit the order.
The case is linked to a long-standing dispute dating back to 2015, when Ajay Singh took control of SpiceJet from Kalanithi Maran. The disagreement mainly relates to alleged non-issuance of share warrants and other financial commitments that were part of the ownership transfer arrangement. This issue has led to multiple rounds of litigation over the years.
Submissions made on behalf of Maran indicated that the total dues, when calculated with interest, could exceed INR 400 crore. This figure is significantly higher than the amount currently being contested, and it has added to the complexity of the matter.
The dispute has also seen intervention from the Supreme Court in the past. The apex court had declined to interfere with the High Court's direction to deposit the amount, reinforcing the obligation on SpiceJet. At the same time, earlier legal proceedings have provided partial relief to the airline, including the setting aside of a larger arbitration award and rejection of certain high-value claims made earlier.
In recent hearings, SpiceJet has explored alternative ways to comply with the court's direction, including offering immovable property as security. However, the court has so far shown preference for a monetary deposit to ensure compliance with its order and to safeguard the interests of the opposing party.
Source PTI
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
