SpiceJet, Ajay Singh undertake to pay Rs 140 crore in KAL Airways dispute

SpiceJet and its Managing Director Ajay Singh on Monday undertook before the Delhi High Court to pay Rs 140 crore to KAL Airways Pvt Ltd and its promoter Kalanithi Maran in connection with execution proceedings arising from an arbitral award, prompting the court to set a timeline for the payment.

Justice Subramonium Prasad accepted the undertaking after the airline informed the court, through an additional affidavit filed on July 10, that it would deposit Rs 50 crore with the court registry within 45 days and the remaining Rs 90 crore within the following 90 days.

Also Read: SC rejects SpiceJet's plea in Rs 144 cr case with Kalanithi Maran & Kal Airways, asks it to move Delhi HC


The High Court directed SpiceJet and Singh to deposit the first tranche of Rs 50 crore within the stipulated period to demonstrate their bona fides in complying with its earlier directions. The matter has been listed for September 21 to monitor compliance with the payment schedule.

The court also deferred hearing SpiceJet's petition under Section 34 of the Arbitration and Conciliation Act, 1996, challenging the arbitral award, indicating that it would take up the matter only after the airline complies with the deposit directions.

The application seeking additional time to make the payment came after the Supreme Court, on May 19, declined to interfere with an earlier Delhi High Court order directing SpiceJet and Ajay Singh to deposit the amount awarded in arbitration.

Also Read: Delhi High Court reserves order on SpiceJet's plea to review Rs 144 cr payment order in dispute with Maran

Senior advocate Mukul Rohatgi appeared virtually for SpiceJet and Ajay Singh, while senior advocate Jayant Mehta represented KAL Airways Pvt Ltd and Kalanithi Maran.

The dispute stems from an arbitral award in favour of KAL Airways and Maran. Earlier, the Delhi High Court had directed SpiceJet and Singh to deposit Rs 144 crore during the pendency of the proceedings.