The Supreme Court refused to interfere with the Delhi High Court’s order directing SpiceJet and Ajay Singh to deposit Rs 144.51 crore in the long-running dispute with Kalanithi Maran and KAL Airways.
The Court also imposed Rs 1 lakh costs on Singh for repeatedly pursuing the litigation despite earlier directions.
The Supreme Court of India on Friday dismissed a plea filed by SpiceJet Limited and its Chairman Ajay Singh against the January 19 order of the Delhi High Court directing them to deposit Rs 144.5 crore in the long-pending arbitration dispute with Kalanithi Maran and KAL Airways Pvt Ltd.
A Bench of Justices PS Narasimha and Alok Aradhe not only refused to interfere with the High Court’s order but also imposed costs of Rs 1 lakh on Ajay Singh for repeatedly continuing the litigation despite earlier directions.
The dispute dates back to 2015, when SpiceJet was facing a severe financial crisis and was on the verge of shutting down operations. At that time, Kalanithi Maran and KAL Airways were the promoters and majority shareholders of the airline, holding 58.46% stake.
In January 2015, the parties entered into a Share Sale and Purchase Agreement (SSPA). Under this agreement, Maran and KAL Airways agreed to transfer their entire shareholding in SpiceJet to Ajay Singh for a token amount of Rs 2.
This transaction was not just a simple share transfer. It was part of a larger financial arrangement which included the issuance of warrants and cumulative redeemable preference shares (CRPS), along with an overall funding commitment of around Rs 450 crore to help the airline recover.
However, disputes later arose between the parties over whether each side had fulfilled its obligations under the SSPA. As a result, the matter was referred to arbitration.
In July 2018, a three-member arbitral tribunal directed SpiceJet and Ajay Singh to refund Rs 308.21 crore to Maran and KAL Airways. The tribunal also awarded interest at the rate of 12% per annum from November 2015. Both sides challenged the arbitral award under Section 34 of the Arbitration and Conciliation Act, 1996. At the same time, enforcement proceedings were also started.
The enforcement proceedings led to multiple rounds of litigation before both the Delhi High Court and the Supreme Court. Earlier, the High Court had directed a deposit of Rs 579 crore as an interim measure. This was later modified in appeal, allowing SpiceJet to furnish a Rs 329 crore bank guarantee and deposit Rs 250 crore in cash.
In 2019, Rs 250 crore was released to Maran and KAL Airways. Additionally, Rs 58.21 crore was paid from the bank guarantee. Later, in February 2023, the Supreme Court ordered the encashment of the bank guarantee and directed payment of Rs 75 crore towards interest within three months. The Court made it clear that failure to comply would make the entire award executable.
In July 2023, when further time was sought, the Supreme Court refused and held that due to non-compliance, the arbitral award had become executable in full.
In January 2026, the Delhi High Court considered fresh applications filed by SpiceJet and Ajay Singh seeking a stay on the arbitral award. The High Court noted that the earlier directions of the Supreme Court had not been complied with. Relying on Article 144 of the Constitution, which requires all authorities to act in aid of the Supreme Court, the High Court refused to grant relief.
The High Court also recorded that the judgment debtors themselves had admitted in earlier proceedings that Rs 194.51 crore remained payable towards interest. Out of this, Rs 50 crore had already been deposited. Therefore, the Court directed them to deposit the remaining Rs 144.51 crore within six weeks.
Challenging this direction, SpiceJet and Ajay Singh once again approached the Supreme Court. However, the apex court dismissed their plea and imposed costs of Rs 1 lakh on Ajay Singh. With this order, the Supreme Court effectively upheld the Delhi High Court’s direction to deposit the admitted amount.
Senior Advocate Amit Sibal appeared for Ajay Singh and SpiceJet. On the other side, Senior Advocate Jayant Mehta represented Kalanithi Maran and KAL Airways, assisted by a legal team from Karanjawala & Co comprising Nandini Gore (Senior Partner), Sonia Nigam (Principal Associate), Swati Bharadwaj (Senior Associate) and Akarsh Sharma (Associate).
With this latest decision, the Supreme Court has once again reinforced that arbitral awards must be respected and that repeated non-compliance with court directions will not be entertained.
Case Title:
SpiceJet Vs Kal Airways
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