SpiceJet's shares up by 6% today: What's fueling rally?
What's the story
SpiceJet's shares surged by 6% during intra-day trading today, after the Supreme Court rejected Kalanithi Maran and KAL Airways' plea for ₹1,323 crore in damages. The court upheld the Delhi High Court's ruling that dismissed their claim against the airline. This decision comes as a major relief for SpiceJet, which has been struggling financially.
Legal dispute
What did SC say?
The SC bench, comprising Justices Pamidighantam Sri Narasimha and Atul S Chandurkar, dismissed the special leave petitions that were filed by KAL Airways and its promoter Maran. The court said, "Both the special leave petitions are dismissed," effectively ending their attempts to seek damages from SpiceJet over a failed share transfer deal.
Court proceedings
A look at Delhi HC's verdict
The Delhi HC had earlier refused to condone a 55-day delay in filing and a 226-day delay in re-filing the appeal. The court had called it a "calculated gamble" by the appellants, accusing them of deliberately hiding facts from both SpiceJet and itself. The Limitation Act governs condonation of delay, permitting 90 days to file an appeal; anything beyond that needs a plausible explanation—which was missing here.
Case history
Dispute started in 2015
The dispute dates back to 2015 when Maran and KAL Airways transferred their 58.46% stake in SpiceJet to its founder Ajay Singh. The transfer happened amid a financial crisis at the airline, with Singh taking over operations and liabilities. Maran and KAL later claimed they had paid for convertible warrants/preference stocks worth over ₹1,300 crore which were never issued.
Arbitration
Case went into arbitration
The case went into arbitration, with an initial ruling favoring KAL Airways. However, the Delhi HC later set aside this arbitral award—a decision upheld by the SC. After this, KAL Airways and Maran tried to revive their damages claim through both courts but were unsuccessful. The SC found their conduct lacked good faith and was part of a litigation strategy rather than negligence or delay.
Airline's reaction
SpiceJet welcomes ruling
SpiceJet welcomed the decision, noting that a panel of three retired SC judges had already examined and rejected the damages claim. The airline also argued that Maran's repeated attempts to revive this case were judicial overreach. The ruling comes as SpiceJet is facing financial stress and a shrinking market share amid several operational challenges.
Financial overview
A look at the financials
As of March 2025, SpiceJet had a net worth of ₹683 crore, bolstered by a ₹500 crore equity infusion from its promoter group. The airline has also inked partnerships with StandardAero and Carlyle Aviation to speed up its engine overhauls and fleet expansion. After the SC verdict, SpiceJet stocks rose as much as 6% to an intra-day high of ₹40.42, but remain over 49% below their 52-week high of ₹79.90 in September 2024.