Supreme Court rejects SpiceJet’s plea to avoid Rs 144 crore deposit

The Supreme Court on Friday dismissed the plea of SpiceJet Limited and its chairman Ajay Singh , who had sought to challenge a Delhi High Court order directing the deposit of Rs 144.5 crore in an arbitration dispute with Kalanithi Maran and KAL Airways Pvt Ltd .

A bench comprising Justices PS Narasimha and Alok Aradhe upheld the January 19 High Court order and imposed costs of Rs 1 lakh on Ajay Singh for prolonging the litigation.

The dispute stems from a 2015 share transfer agreement in which Kalanithi Maran and KAL Airways sold their 58.46% stake in SpiceJet to Ajay Singh . While most of the payment, Rs 730 crore, including principal and interest, has already been made, a remaining Rs 144.5 crore is yet to be deposited. The courts are now ensuring this outstanding amount is paid as part of the arbitration process.

Responding to the verdict, SpiceJet said it has taken note of the order and is examining the directions. The airline assured stakeholders that the ruling would have no impact on day-to-day operations. “The matter relates to a share transfer agreement involving SpiceJet, its promoter Ajay Singh, KAL Airways, and Kalanithi Maran. The remaining amount , as directed, will be deposited with the court following the arbitration process,” the company added.

The Delhi High Court , in January, also noted that Supreme Court directives from 2023 regarding payment and compliance had not been fully observed. SpiceJet had acknowledged Rs 194.51 crore as payable , of which Rs 50 crore had already been deposited, leaving the current balance of Rs 144.51 crore .