Supreme Court rejects SpiceJet's plea, imposes fine

New Delhi: The Supreme Court Friday dismissed SpiceJet's appeal challenging the Delhi High Court's January order asking the cash-strapped carrier to deposit around ₹144 crore with its registry within six weeks in an arbitration dispute over share transfer involving former promoter Kalanithi Maran and KAL Airways.

Upholding the January 19 order that also reprimanded SpiceJet for failing to fulfil its obligations even after three years of the apex court's July 2023 order, a bench led by Justice PS Narsimha questioned the airline on how it would justify not paying the amount mentioned in its earlier order.

"Is this a joke or what?" Justice Narasimha asked, while imposing costs of ₹1 lakh for filing the current appeal and for not paying so far.


The court said it will never see the end of litigation if the fine was not imposed upon SpiceJet.

In July 2023, the apex court had directed SpiceJet to pay the entire arbitration award of ₹380 crore to Maran, saying business must be carried out with "commercial morality."

SpiceJet said that it had taken note of the order of the Supreme Court, which declined to interfere with the earlier direction to deposit ₹144 crore.

"The company is examining the order and will comply with all court directions. SpiceJet would like to assure all stakeholders that this development has no impact on its day-to-day operations," the airline said Friday.

"The matter arises from a share transfer agreement involving SpiceJet, its promoter Ajay Singh, KAL Airways and Kalanithi Maran. SpiceJet has paid a total of ₹730 crore to Maran and KAL Airways, including the entire principal amount of ₹580 crore and ₹150 crore towards interest. The remaining amount, as directed by the court, will be deposited in court in accordance with the arbitration process," the press statement said Friday.

Airline Responds

Claims of more than ₹1,300 crore in damages made by KAL Airways and Maran have been rejected and these orders have attained finality, the airline said.

"All challenges to the arbitral award by KAL and Maran have also been dismissed. SpiceJet's claims against KAL and Maran for a refund of amounts paid is being heard by the Delhi HC and there is a prima facie finding of the court in favour of SpiceJet," it said, adding "SpiceJet remains confident of receiving a potential refund of ₹449 crore on the culmination of this legal process."