SpiceJet denied more time to pay ₹144.51cr to Kalanithi Maran
What's the story
The Delhi High Court has rejected a plea from SpiceJet, seeking more time to deposit ₹144.51 crore in its ongoing dispute with Kalanithi Maran and KAL Airways. The airline had previously committed to pay the outstanding amount in installments but failed to deposit an initial installment of ₹50 crore within the stipulated 45 days.
Legal proceedings
Repeated extensions can't be granted: HC
Justice Vinod Kumar of the Delhi High Court said that repeated extensions can't be granted as SpiceJet didn't comply with its own undertaking.
The court also rejected SpiceJet's request to submit documents of a Gurugram property as security for the outstanding amount.
This was because the property was already mortgaged in a previous order, and even though it is now unencumbered, the airline hasn't fulfilled its commitment to deposit ₹50 crore.
Financial woes
SpiceJet's financial struggles and market performance
The latest development comes as SpiceJet continues to face a cash crunch, legal disputes, unpaid salaries, as well as operational disruptions due to the ongoing West Asia conflict.
Once India's third-largest airline, SpiceJet has now slipped to fourth place with a domestic market share of just 1.2% in August 2026.
Dispute origins
Background of the dispute
The dispute dates back to 2015 when Maran and KAL Airways sold their 58.46% stake in SpiceJet to promoter Ajay Singh amid severe financial stress at the airline.
Maran had invested about ₹679 crore in SpiceJet through convertible warrants/preference shares as part of the transaction.
He later alleged that the new management failed to issue these securities, leading to arbitration proceedings against SpiceJet.
Court orders
Supreme Court's order and outstanding amounts
In February 2023, the Supreme Court ordered encashment of a ₹270 crore bank guarantee and directed SpiceJet to pay ₹75 crore as interest.
The court warned that non-compliance would make the arbitral award executable.
SpiceJet claimed it already paid around ₹729 crore toward this award, including interest.
Earlier this year, the Delhi High Court recorded an outstanding amount of ₹194.51 crore, and directed SpiceJet and Singh to deposit ₹144.51 crore after adjusting for an earlier deposit of ₹50 crore.