Delhi HC Rejects SpiceJet Review Plea, Upholds Rs 144-Cr Deposit Order In Maran Dispute

The Delhi High Court on Monday dismissed review petitions filed by SpiceJet and its promoter Ajay Singh , refusing to reconsider its direction to deposit Rs 144 crore in an ongoing dispute with media baron Kalanithi Maran and Kal Airways .

Justice Subramonium Prasad imposed a cost of Rs 50,000 and directed the airline to immediately deposit the amount with the court registry, observing that the matter is already at the execution stage of an arbitral award .

The court noted that out of a total admitted liability of Rs 194.5 crore , Rs 50 crore has already been deposited , leaving a balance of Rs 144 crore . It rejected SpiceJet’s plea citing financial distress due to the West Asia conflict , stating that such grounds had already been considered earlier and could not justify further delay.

The High Court emphasised that the Supreme Court had made the arbitral award executable in July 2023 , and subsequent developments could not be used to avoid compliance. It also flagged repeated non-compliance , noting that the petitioners were attempting to delay enforcement.

The dispute dates back to 2015 , when Maran and Kal Airways transferred their 58.46 per cent stake in SpiceJet to Singh for Rs 2 during a financial crisis. Maran had infused about Rs 679 crore into the airline through convertible instruments, which he later alleged were not honoured, including the non-issuance of warrants and preference shares .

In 2018 , an arbitral tribunal rejected Maran’s larger damages claim of over Rs 1,300 crore but directed a refund of Rs 579 crore with interest . Since then, the matter has seen prolonged litigation.

The airline has claimed it has already paid around Rs 730 crore , including amounts realised through a Rs 270 crore bank guarantee encashed under Supreme Court directions , but disputes over the remaining dues continue.

In May 2024 , a division bench of the High Court set aside a single-judge order upholding the arbitral award and remanded the matter for fresh consideration, even as enforcement proceedings have progressed.

The court said no valid grounds were made out for review and directed that the imposed cost be deposited with the Armed Forces Battle Casualties’ Welfare Fund within four weeks.