SC Rejects SpiceJet Plea in ₹144.5 Crore Dispute
Ajay Singh’s Challenge to Delhi HC Order Dismissed; Court Imposes ₹1 Lakh Cost
- Supreme Court dismisses SpiceJet and Ajay Singh’s petition
- Upholds Delhi HC order directing ₹144.5 crore deposit
- ₹1 lakh cost imposed on Ajay Singh
- Dispute with Kalanithi Maran dates back to 2015 restructuring
GG News Bureau
New Delhi, 27th Feb: The Supreme Court on Friday dismissed a petition filed by SpiceJet and its chairman Ajay Singh challenging a Delhi High Court order that directed the airline to deposit ₹144.5 crore in its long-running financial dispute with media baron Kalanithi Maran and KAL Airways Pvt Ltd.
A bench of Justices PS Narasimha and Alok Aradhe rejected the plea and imposed costs of ₹1 lakh on Singh, marking another setback for the airline in a legal battle that has stretched over a decade.
Origins of the Dispute
The case traces back to early 2015 when SpiceJet was on the brink of collapse. At the time, Maran and KAL Airways held a 58.46% stake in the airline. Under a Share Sale and Purchase Agreement (SSPA), they agreed to transfer their entire shareholding to Ajay Singh for ₹2 as part of a rescue plan.
The agreement involved issuance of warrants and cumulative redeemable preference shares, with an overall funding commitment estimated at around ₹450 crore. Disputes later arose over compliance with obligations under the agreement, leading to arbitration.
In July 2018, an arbitral tribunal ruled in favour of Maran and KAL Airways, directing SpiceJet and Singh to refund ₹308.21 crore along with 12% annual interest from November 2015.
Legal Battle Escalates
Subsequent proceedings saw multiple challenges before the Delhi High Court and the Supreme Court. Interim directions initially required a ₹579 crore deposit, later modified to a combination of a ₹329 crore bank guarantee and ₹250 crore cash deposit.
In 2023, the Supreme Court ordered encashment of the bank guarantee and directed payment of ₹75 crore towards interest, warning that non-compliance would make the award fully executable.
Earlier this year, the Delhi High Court directed SpiceJet to deposit ₹144.5 crore after noting that ₹194.51 crore remained payable towards interest, of which ₹50 crore had already been deposited.
Challenging this order, the airline and Singh approached the apex court again. The Supreme Court’s dismissal now effectively upholds the High Court’s directive.
