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The Supreme Court has rejected low-cost airline SpiceJet’s plea for additional time to make payments to Kalanithi Maran, as mandated by the court’s earlier order from February. The court firmly criticised SpiceJet for pursuing what it deemed as a “luxury litigation” and emphasised the importance of upholding commercial morale.
During the hearing, SpiceJet, represented by senior advocate Mukul Rohatgi, requested an extension and expressed readiness to pay ₹10 crore immediately to demonstrate their commitment. However, senior advocate Maninder Singh, representing Maran, argued that SpiceJet had failed to comply with the court’s previous order and urged against granting any extension.
“The present order of Supreme Court is the reiteration of its earlier order passed in February 2023. The main petition challenging the award by both parties are pending disposal by the Hon’ble Delhi High Court. The matter relates to payment of interest on a principal amount of ₹579 crore that has already been paid. SpiceJet is engaged in talks with Mr. Kalanithi Maran and his firm KAL Airways and remains committed to finding an amicable settlement. We remain confident of resolving this to the satisfaction of both sides through discussions,” a SpiceJet spokesperson said in response to the order.
Non-compliance
In February 2023, the Supreme Court disposed of the case by directing SpiceJet to encash its ₹270-crore bank guarantee and pay ₹75 crore in interest within three months. Nonetheless, in May, Maran approached the Delhi High Court, asserting that SpiceJet had not adhered to the Supreme Court’s order. Consequently, the Delhi High Court directed SpiceJet to pay the entire interest amount of ₹380 crore to Maran, highlighting SpiceJet’s non-compliance.
Also read: SpiceJet delays FY23 results announcement
In 2015, Maran and KAL Airways transferred their majority stake in SpiceJet to Ajay Singh, the current Chairman and Managing Director, along with taking on the airline’s liabilities. Maran alleged that warrants and preference shares promised under the agreement were not issued, leading to arbitration proceedings against SpiceJet and Singh.
In 2018, an arbitration panel ruled against Maran’s damage claims but awarded him a refund of ₹579 crore plus interest. SpiceJet was instructed to furnish a bank guarantee of ₹329 crore and make a cash deposit of ₹250 crore.
Subsequently, Maran sought enforcement of the arbitral award through the Delhi High Court, which ruled in his favour in September 2020. However, the Supreme Court stayed the order in November 2020.
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