SpiceJet has approached the Supreme Court challenging a Delhi High Court order directing the airline to deposit ₹144.5 crore in its long-running legal dispute with former promoter Kalanithi Maran and KAL Airways Pvt Ltd.

According to details available on the Supreme Court website, SpiceJet filed its petition on 7 May, shortly after the Delhi High Court dismissed the airline’s review plea and imposed a penalty of ₹50,000 on the company for repeatedly seeking changes to the court’s earlier order.

The matter is yet to be listed for hearing before the Supreme Court.

Delhi High Court refused relief to SpiceJet

The Delhi High Court directed SpiceJet to immediately deposit ₹144.51 crore with the court registry as part of the ongoing financial dispute linked to the airline’s former ownership.

SpiceJet had argued before the court that making an immediate cash payment would put severe pressure on its already stressed finances. The airline claimed that ongoing geopolitical tensions in West Asia, rising aviation turbine fuel (ATF) prices and the temporary suspension of some flight operations had worsened its financial situation.

The airline also requested permission to provide a commercial property in Gurugram, valued at around ₹148 crore, as security instead of depositing cash. SpiceJet told the court that the property was free from any financial liabilities and could later be monetised.

However, the High Court rejected the request.

Justice Subramonium Prasad observed that the airline could not use later geopolitical developments or financial difficulties as reasons to avoid complying with court orders.

The court also noted that the Supreme Court had already made it clear in July 2023 that if SpiceJet failed to follow earlier payment directions, the arbitral award against the airline would become fully executable.

Calling SpiceJet’s repeated petitions “a complete abuse of the process of law,” the High Court imposed ₹50,000 as costs and ordered immediate compliance.

Dispute dates back to 2015 ownership transfer

The legal battle between SpiceJet and Kalanithi Maran goes back more than a decade.

In January 2015, during a major financial crisis at SpiceJet, Maran and KAL Airways transferred their 58.46% stake in the airline to current chairman and promoter Ajay Singh.

As part of the transaction, Maran had infused nearly ₹679 crore into the airline through convertible warrants and preference shares.

Later, Maran alleged that the new management failed to issue those warrants and preference shares as agreed, leading to arbitration proceedings between the two sides.

Court battles continue…

In July 2018, an arbitral tribunal rejected Maran’s claim seeking more than ₹1,300 crore in damages. However, it directed SpiceJet to refund ₹579 crore along with interest.

Since then, the matter has gone through several rounds of hearings in both the Delhi High Court and the Supreme Court.

In February 2023, the Supreme Court ordered the encashment of a ₹270 crore bank guarantee and directed SpiceJet to pay ₹75 crore towards interest dues. The apex court had also warned that if the airline failed to comply, the arbitral award could become fully enforceable.

SpiceJet has maintained that it has already paid around ₹730 crore to Maran and KAL Airways, including both principal and interest payments.

₹144 crore still outstanding

Earlier this year, the Delhi High Court observed that ₹194.51 crore still remained unpaid under previous court directions. After adjusting ₹50 crore already deposited by the airline, the court ordered SpiceJet and Ajay Singh to deposit the remaining ₹144.5 crore.

The latest move to the Supreme Court is seen as another attempt by the financially stressed airline to seek relief and avoid immediate cash outflow.

The case comes at a time when SpiceJet continues to face operational and financial pressures amid rising fuel costs, intense competition and ongoing market challenges in the Indian aviation sector.