SpiceJet vs KAL Airways, Kalanithi Maran: Airline confident of Rs 144 cr refund on completion of legal process

SpiceJet is confident of getting Rs crore refund after the completion of legal process, the airline said in a statement on Monday after the Supreme Court declined its plea challenging the Delhi High Court's January order asking the cash-strapped carrier to deposit around Rs 144 crore with its registry within six weeks in an arbitration dispute over share transfer involving former promoter Kalanithi Maran and KAL Airways.

SpiceJet share price: Shares of SpiceJet Ltd. were trading at Rs 15.38 per script after a 4.35% decline of Rs 0.70 amid rising flight cancellations due to the conflict in the Middle East.

The apex court remanded SpiceJet for failing to fulfil its obligations even after three years of its 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.


Also read: Supreme Court rejects SpiceJet's plea, imposes fine

"The matter arises from a share transfer agreement involving SpiceJet, its promoter Ajay Singh, KAL Airways and Kalanithi Maran," it said in a regulatory filing.

As per the release, SpiceJet has paid Rs 730 crore to Kalanithi Maran and KAL Airways, including the entire principal amount of Rs 580 crore and Rs 150 crore towards interest. The remaining amount, as directed by the court, will be deposited in court in accordance with the arbitration process.

"The amount being paid by SpiceJet is in the nature of a deposit held by the court while SpiceJet’s appeal is being decided by the court," it clarified.

Following the court's order, SpiceJet said it remains confident of receiving a potential refund of Rs 449 crore on the culmination of this legal process. "Claims of over Rs 1,300 crore in damages made by KAL Airways and Kalanithi Maran have been rejected and these orders have attained finality," it said.

It further noted that all challenges to the arbitral award by KAL Airways and Kalanithi Maran have also been dismissed.SpiceJet’s claims against the two parties for a refund of amounts paid is being heard by the HC and there is a prima facie finding of the apex court in favour of SpiceJet.