Maran case: SpiceJet asks for more time to deposit Rs 144 cr

New Delhi: Cash-strapped SpiceJet and its chairman and managing director Ajay Singh on Monday told the Delhi High Court the airline would collapse if forced to immediately deposit ₹144 crore in an arbitration dispute with former promoter Kalanithi Maran and KAL Airways.

The airline instead reiterated its proposal to offer an "unencumbered" one-acre land parcel worth ₹400-500 crore in Udyog Vihar, Gurugram, as security. The court had earlier rejected the offer after Maran claimed the property was mortgaged.

Seeking a four-week deferment on the deposit, SpiceJet, through senior counsel Mukul Rohatgi and Amit Sibal, told Justice Subramonium Prasad that the aviation sector, particularly the airline, has been hit by the West Asia crisis and rising aviation turbine fuel prices. Immediate compliance with the order would jeopardise operations, it said.


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"Give me breathing time in this period of strangulation of aviation industry. We have paid ₹729 crore in cash and have to now pay balance interest of ₹144 crore. This amount is not humongous. My entire ecosystem will collapse if my assets are attached," Rohatgi argued.

He said enforcement of the order could disrupt operations, affect employees and passengers, and worsen the airline's financial position.

SpiceJet also said it has appointed real estate advisory firm CBRE to sell the property and requires at least six months to complete the sale.

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Rohatgi told the court the government is considering a support package for the sector, similar to measures during the Covid-19 pandemic, under which airlines may be allowed to borrow from public sector banks with sovereign backing.

The matter will be heard further on Wednesday.