As per The Mint report, The Delhi High Court has dismissed SpiceJet's appeal to review an earlier ruling requiring the airline to deposit ₹144.5 crore in a prolonged legal dispute with Kalanithi Maran and KAL Airways Pvt Ltd.
This decision further complicates SpiceJet's financial situation, as the airline claims to be under severe liquidity stress.
On May 4, 2026, the Delhi High Court rejected SpiceJet's review plea and imposed an additional ₹50,000 cost on the airline.
SpiceJet had requested relief from a previous order mandating the deposit of ₹144.5 crore in an ongoing arbitration dispute with Kalanithi Maran and KAL Airways.
The review petition was filed by SpiceJet and its promoter Ajay Singh, challenging the court's prior direction to deposit the amount within a prescribed timeline.
In March, the High Court had refused SpiceJet's proposal to offer a one-acre commercial property in Gurugram valued at approximately ₹148 crore as security instead of the cash deposit.
SpiceJet submitted that its financial woes were worsened by disruptions relating to the ongoing West Asia conflict and a sharp rise in aviation turbine fuel (ATF) prices.
The airline warned that enforcing the cash deposit could lead to its operational collapse, affecting approximately 22,000 passengers and around 7,000 employees due to flight disruptions.
The airline argued that the Gurugram property is unencumbered and even offered to deposit the title deeds as security.
However, KAL Airways, owned by Sun Group chairman Kalanithi Maran, opposed this proposal, highlighting that SpiceJet's liabilities exceed the claimed amount.
KAL Airways contended that SpiceJet owes over ₹400 crore, including interest, and that the review plea was merely a tactic to delay compliance with court orders.
The legal tussle dates back to 2015, when Maran and KAL Airways transferred their 58.46% stake in SpiceJet to Ajay Singh during a period of financial difficulty.
Maran had infused approximately ₹679 crore into the airline through convertible warrants and preference shares, which he later claimed were not honoured by the new management, prompting arbitration proceedings.
The arbitral tribunal, in 2018, dismissed Maran’s claim for ₹1,300 crore in damages but directed SpiceJet to refund ₹579 crore with interest.
Despite multiple litigations, the financial discrepancies and interpretations persist. In February, the Supreme Court ordered the encashment of a ₹270 crore bank guarantee and directed SpiceJet to pay ₹75 crore towards interest.
As of May 04, 2026, at 11:12 AM, SpiceJet share price on BSE was trading at ₹13.42 up by 0.45% from the previous closing price.
The Delhi High Court's decision to uphold its ruling for SpiceJet to deposit ₹144.5 crore, rather than accept property as security, poses a critical financial challenge for the airline. With SpiceJet asserting that it has already paid significant amounts to Maran and KAL Airways, disputes over the outstanding amounts and financial strategies continue to evolve in this drawn-out legal battle.
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Published on: May 4, 2026, 11:35 AM IST
Team Angel One
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