The Delhi high court on Tuesday said budget airline SpiceJet and its promoter, Ajay Singh, cannot evade compliance with its March 18 direction to deposit ₹144.5 crore as part of ongoing arbitration dispute with Kalanithi Maran and KAL Airways by filing a review petition.
“You have to comply with the order. …this [review] application is not a passport to not comply with the order,” Justice Subramonium Prasad said after Singh’s lawyer informed the court that their client and SpiceJet have filed two review petitions against the March 18 order. One of the two pleas has been listed.
The court noted the submission and adjourned the matter to Monday.
On March 18, the court directed SpiceJet to deposit ₹144.5 crore within four weeks, rejecting the airline’s plea to substitute the amount with an immovable property in Gurugram.
The order was passed in response to the airline’s application seeking modification of the arbitral tribunal’s January 19 directive, instructing SpiceJet and Singh to deposit ₹144.5 crore within six weeks. The court noted that the airline had acknowledged an outstanding liability of ₹194.51 crore under prior directions of the Supreme Court, but had so far paid only ₹50 crore in two instalments.
The dispute dates back to 2015, when Singh took over SpiceJet from Maran and KAL Airways. In 2015, Maran transferred 58.46% of his stake in the airline to Singh. The deal was supposed to get redeemable warrants. Maran was liable to get 18 crore warrants, which translated to 26% shareholding in SpiceJet. He approached the high court since he neither got his share of the money nor convertible warrants or preference shares.
In 2018, the tribunal directed SpiceJet to refund ₹270 crore to Maran and Kal Airways and an interest of 12% per annum on the amounts paid towards warrants and 18% per annum on the sums awarded to Maran if the money transfer is delayed.
Maran, KAL Airways Pvt Ltd, and SpiceJet challenged aspects of the arbitral award before the high court. On July 31, 2023, a single judge dismissed all petitions and upheld the award. A division bench set aside the single judge’s ruling and remanded the matter for fresh consideration.
The Supreme Court dismissed KAL Airways and Maran’s appeals in July 2024. In May 2025, the division bench dismissed Maran and KAL Airways’ appeals against the July 2023 order, citing a “carefully” calculated delay.
