New Delhi: In a setback to SpiceJet, the Supreme Court of India has refused to stay a Delhi High Court order directing the airline and its promoter Ajay Singh to deposit Rs 144.51 crore.
The court also imposed a Rs 1 lakh cost on the airline for prolonging the litigation. The bench of Justices P.S. Narasimha and Alok Aradhe said there had been 'tons and tons of litigation' and warned that costs could be raised to Rs 2 lakh if delays continued.
This means SpiceJet must deposit Rs 144.51 crore within six weeks, as earlier ordered.
What The High Court Said?
On 19 January, the Delhi High Court noted that SpiceJet had admitted that Rs 194.51 crore was payable under earlier Supreme Court directions. After adjusting Rs 50 crore already paid, Rs 144.51 crore remained due.
The High Court said Supreme Court orders must be followed and cannot be kept pending. It referred to Article 144 of the Constitution, which requires all authorities to act in support of Supreme Court orders.
The court rejected SpiceJet’s argument that payment should wait until final decisions on the arbitral award.
Background Of The Dispute
The dispute began in January 2015. Kalanithi Maran and KAL Airways Pvt Ltd transferred their 58.46 percent stake in SpiceJet to Ajay Singh when the airline was facing financial trouble.
As part of the deal, about Rs 679 crore was infused into the airline through convertible warrants and preference shares. Maran later claimed these instruments were not issued and sought a refund.
In July 2018, an arbitration tribunal directed SpiceJet to refund Rs 579 crore plus interest, though it rejected Maran’s larger damages claim of Rs 1,323 crore.
Since then, both sides have filed multiple petitions and appeals, leading to a long legal battle.
Ongoing Financial Pressure
The case remains a major financial burden for SpiceJet, which has faced liquidity issues, grounded aircraft and insolvency petitions from some lessors and creditors in recent years.
