The Supreme Court on Friday dismissed a plea filed by SpiceJet Limited and its chairman Ajay Singh challenging the Delhi High Court’s January 19 order to deposit ₹144.5 crore in the long-running arbitration dispute with Kalanithi Maran and KAL Airways Pvt Ltd [SpiceJet Vs Kal Airways].
A Bench of Justices PS Narasimha and Alok Aradhe also imposed costs of ₹1 lakh on Ajay Singh for endlessly pursuing the litigation.
The dispute arose in 2015 and involved rescue of SpiceJet which was facing financial crunch. Kalanithi Maran and Kal Airways were the promoters and majority shareholders of the airline, holding 58.46% stake.
When SpiceJet faced severe financial distress and risked shutting down operations, the parties entered into a Share Sale and Purchase Agreement (SSPA) in January 2015 under which Maran and Kal Airways agreed to transfer their entire shareholding to Ajay Singh for a nominal consideration of ₹2.
The transaction was coupled with a broader financial support arrangement involving issuance of warrants and cumulative redeemable preference shares (CRPS) and an overall funding commitment of about ₹450 crore. Disputes later arose over performance of reciprocal obligations under the SSPA, leading to arbitration.
In July 2018, a three-member arbitral tribunal directed SpiceJet and Ajay Singh to refund ₹308.21 crore to Maran and KAL Airways along with interest at 12% per annum from November 2015. Both sides filed challenges under Section 34 of the Arbitration and Conciliation Act, 1996, while enforcement proceedings were initiated in parallel.
The enforcement proceedings saw several rounds of litigation before the Delhi High Court and the Supreme Court.
Earlier, the High Court had directed deposit of ₹579 crore in interim proceedings. This was modified in appeal to permit a ₹329 crore bank guarantee and ₹250 crore cash deposit. In 2019, ₹250 crore was released to the decree holders, and a further ₹58.21 crore was paid from the bank guarantee.
In February 2023, the Supreme Court directed encashment of the bank guarantee and ordered payment of ₹75 crore towards interest within three months, warning that failure to comply would render the award executable in its entirety. In July 2023, the Court refused to grant further time and held that the award had become executable due to non-compliance.
In January 2026, the Delhi High Court dealt with applications filed by SpiceJet and Ajay Singh seeking a stay of the award. The Court noted that the Supreme Court’s directions had not been complied with and relied on Article 144 of the Constitution, which mandates that all authorities act in aid of the Supreme Court.
The High Court also recorded that the judgment debtors had themselves admitted in earlier proceedings that ₹194.51 crore remained payable towards interest, of which ₹50 crore had already been deposited.
Accordingly, the Court directed deposit of the remaining ₹144.51 crore within six weeks.
Challenging this direction, SpiceJet and Ajay Singh approached the Supreme Court.
The apex court today dismissed the plea and imposed costs of ₹1 lakh on Ajay Singh, effectively affirming the High Court’s direction to deposit the admitted amount.
Singh and SpiceJet were represented by Senior Advocate Amit Sibal
Kal Airways and Maran was represented by Senior Advocate Jayant Mehta with a team from Karanjawala & Co comprising Nandini Gore Sr Partner ,Sonia Nigam principal Associate ,Swati Bharadwaj Sr Associate and Akarsh Sharma Associate.