The Delhi High Court on Monday dismissed review petitions filed by SpiceJet and its promoter Ajay Singh, refusing to reconsider an earlier directive requiring them to deposit Rs 144 crore in an ongoing legal dispute with Kalanithi Maran and Kal Airways. Justice Subramonium Prasad also imposed a cost of Rs 50,000 on the airline and Singh, instructing them to immediately deposit Rs 144.51 crore with the court registry.
Background of the Case
The court had first issued the deposit order on January 19, directing payment within six weeks against an admitted liability of Rs 194 crore arising from an arbitration award. This deadline was later extended by four weeks on March 18. SpiceJet and Singh sought a review of that extension order, citing financial strain linked to the West Asia conflict. They also proposed offering a commercial property in Gurugram as security and told the court that the Centre might extend support.
Court's Reasoning
However, the court dismissed these arguments, noting that the arbitration award had already been made executable by the Supreme Court of India in July 2023. It said subsequent geopolitical developments could not be used to delay compliance. The airline’s financial difficulties, the court added, had already been considered earlier and did not justify further relief. The judge observed that the petitioners were attempting to rely on events that occurred long after the apex court’s order and were effectively disregarding binding directions. It also rejected their plea for more time to sell assets, stating that sufficient opportunity had already been granted and was being misused.
Disposal and Costs
Finding no merit in the review petitions, the court dismissed them and directed that the Rs 50,000 cost be deposited with the Armed Forces Battle Casualties’ Welfare Fund within four weeks.
Origin of Dispute
The dispute traces back to 2015, when Maran and Kal Airways transferred a 58.46% stake in SpiceJet to Singh for Rs 2 during a financial crisis. The case centres on allegations related to non-issuance of warrants following the ownership transfer. In May 2024, a division bench of the high court had set aside a previous order upholding a Rs 579 crore arbitral award against SpiceJet and Singh, and sent the matter back for fresh consideration.
