Delhi HC dismisses SpiceJet review plea over ₹144.5 crore deposit to Marans
The ruling leaves SpiceJet with an unchanged cash deposit obligation despite its claims of severe liquidity stress, closing another courtroom avenue in a decade-long legal battle over a distressed 2015 stake transfer.
In a big blow to budget carrier SpiceJet, the Delhi High Court on Monday rejected its review plea and imposed a ₹50,000 cost on the airline for filing the petition.
Budget carrier SpiceJet had sought relief from an earlier order directing it to deposit ₹144.5 crore in its long-running arbitration dispute with Kalanithi Maran and KAL Airways Pvt. Ltd.
The review petition, filed by SpiceJet and its promoter Ajay Singh, challenges the high court’s January direction requiring the airline to deposit the amount within a stipulated timeline.
The plea follows the court’s 18 March order, which rejected SpiceJet’s request to modify the earlier direction and instead furnish an unencumbered immovable property worth around ₹148 crore as security in place of a cash deposit.
The outcome of the case is significant for the airline’s financial stability.
SpiceJet has argued that it is facing a severe liquidity crunch and has urged the court to allow it to offer a one-acre commercial property in Gurugram as security instead of making an immediate cash payment.
The airline submitted that its financial stress has been exacerbated by disruptions linked to the ongoing West Asia conflict and a sharp rise in aviation turbine fuel (ATF) prices.
It warned that enforcing the cash deposit could push it towards collapse, stating that it is already struggling to stay afloat and that an immediate outflow of ₹144.5 crore could jeopardize its operations.
Around 22,000 passengers and 7,000 employees have been affected due to the recent flight disruptions, according to submissions before the court.
The airline had proposed furnishing an unencumbered immovable property in Gurugram worth approximately ₹148 crore as security, instead of making a cash deposit. However, the court declined to accept this alternative and insisted on a cash deposit.
SpiceJet said the Gurugram property is unencumbered and that the airline is willing to deposit the title deeds before the court as security.
Opposing the plea, KAL Airways, owned by Sun Group chairman Kalanithi Maran, argued that
SpiceJet’s liabilities are significantly higher than what the airline has claimed.
KAL Airways told the court that SpiceJet owes over ₹400 crore, including interest, in the arbitration dispute. “Interest is not being calculated properly in their books.
Maran’s side also opposed the proposal to substitute a cash deposit with property, contending that the arbitral award must be satisfied through monetary payment. It argued that the review plea was an attempt to delay compliance with court orders.
The dispute dates back to January 2015, when Maran and KAL Airways transferred their 58.46% stake in SpiceJet to Ajay Singh during a period of acute financial distress. As part of the transaction, Maran had infused around ₹679 crore into the airline through convertible warrants and preference shares.
Maran later alleged that these instruments were not issued by the new management and sought a refund, triggering arbitration proceedings.
In July 2018, the arbitral tribunal rejected Maran’s claim for over ₹1,300 crore in damages but directed SpiceJet to refund ₹579 crore along with interest.
The matter has since seen multiple rounds of litigation. In February 2023, the Supreme Court directed encashment of a ₹270 crore bank guarantee and ordered SpiceJet to pay ₹75 crore towards interest, warning that non-compliance would render the award fully executable.
SpiceJet has maintained that it has already paid around ₹730 crore to Maran and KAL Airways, including principal and interest. However, disputes over the calculation of outstanding dues have continued.
In January this year, the Delhi High Court recorded that ₹194.51 crore remained due under earlier directions. After adjusting ₹50 crore already deposited, the court directed SpiceJet and Ajay Singh to deposit the remaining ₹144.5 crore.
About the Authors
Krishna Yadav is a Senior Correspondent at Mint, based in New Delhi, and part of the corporate bureau. He joined the newsroom as a trainee in 2023 and quickly grew into his current role. He writes on legal and regulatory developments in corporate India, with a focus on insolvency, taxation, company law, and policy. His reporting includes tracking and breaking key legal stories from the Supreme Court, Delhi High Court, NCLT, and NCLAT.<br><br>With a background in law, Krishna is known for simplifying complex legal developments into clear, accessible stories for readers. His work focuses on trends in corporate law and policy that affect businesses. This ranges from explaining tax disputes—like whether coconut hair oil is edible—to writing on why celebrities are seeking personal rights protection. He closely tracks India’s insolvency system, covering issues such as creditor losses, gaps in the process, and challenges in how the framework works in practice.<br><br>Krishna also tracks developments within law firms—covering hiring trends, how firms help companies navigate global challenges, and how the legal industry is adapting to artificial intelligence. Beyond legal reporting, he has written long-form pieces, including on-ground coverage of the 2024 general elections, capturing the scale and logistics of polling across India.<br><br>Outside work, he enjoys travelling, exploring new places, and reading about geopolitics and history.
Yash Tiwari is a Mumbai-based journalist who reports on corporate and regulatory developments, with a focus on court-driven policy shifts and the intersection of law and public policy. He has been in the profession for two years. Before joining Mint, he worked at NDTV Profit as an assistant producer on the TV desk while also reporting, gaining experience across television and print journalism and combining reporting with production expertise.<br><br> Born in Kolkata, a city he remains deeply connected to, Yash has a keen interest in the technicalities of Indian law and aims to decode complex legal developments in a clear and accessible manner for readers. He is a graduate of the Asian College of Journalism, Chennai, where he completed his postgraduate diploma in journalism.<br><br> He closely follows politics and government policies, and has covered several state elections as a freelance journalist. His work is driven by the idea of making law less intimidating and more understandable for the general public.<br><br> When not at work, Yash can be found playing cricket, revisiting classic matches, or engaging in conversations about the evolving landscape of law and policy in India.
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