The Delhi High Court on Monday declined to intervene at this stage over SpiceJet Ltd’s failure to deposit the first Rs 50 crore instalment of the Rs 144.51 crore it had undertaken to pay in its long-running dispute with KAL Airways Pvt Ltd and media baron Kalanithi Maran. Justice Subramonium Prasad did not pass any interim order against SpiceJet or its Managing Director Ajay Singh, while leaving KAL Airways and Maran free to take appropriate steps in accordance with law. The airline has sought additional time to make the payment, citing a delay in receiving further financial support from the government.
Airline cites delay in funds
Senior advocate Mukul Rohatgi, appearing for SpiceJet and Singh, told the court that the airline had received the first tranche of emergency credit support from the government in June but the money had been utilised for its operations. SpiceJet was expecting another tranche of around Rs 349 crore, but the funds had not yet been released. The airline consequently sought an extension of time to fulfil its payment commitment.
The court refrained from granting immediate relief and directed that the related application be listed on September 21, when SpiceJet’s bona fides are expected to be examined. The development comes after SpiceJet and Singh had earlier given an undertaking before the High Court to deposit money towards their outstanding liability in the dispute.
Long-running arbitration dispute
In July, the High Court had recorded SpiceJet and Singh’s proposal to deposit Rs 50 crore with the court registry within 45 days, followed by the remaining amount within the stipulated period. The court had specifically required the first payment to demonstrate the airline’s bona fides in complying with its directions. The dispute dates back to 2015, when Maran and KAL Airways transferred their controlling stake in SpiceJet to Singh. The transaction subsequently became the subject of arbitration proceedings involving claims and counterclaims between the two sides.
An arbitral tribunal in 2018 rejected Maran’s demand for damages of Rs 1,323 crore but directed the refund of Rs 270 crore to him and KAL Airways. Subsequent proceedings over interest and enforcement of the award have continued before the courts. The latest application adds another chapter to the years-long legal battle, with the High Court now expected to consider SpiceJet’s request for additional time when the matter comes up on September 21.