Mumbai/New Delhi: Sun Group chairman Kalanithi Maran told the Delhi High Court on Thursday that SpiceJet owes over ₹400 crore, including interest, in their long-running arbitration dispute—far higher than the ₹144.5 crore figure cited by the cash-strapped airline.
Senior lawyer Jayant Mehta, who was representing KAL Airways, argued that “interest is not being calculated properly in their books. There is more than ₹400 crore outstanding.”
The court was hearing SpiceJet’s petition seeking relief against the high court’s earlier order directing it to deposit ₹144.5 crore by April 14.
Senior lawyer Mukul Rohatgi, representing SpiceJet, said, “I am under financial stress due to the West Asia war and rising aviation turbine fuel prices. That is why I am trying my best to sell the property before the next date and pay the dues.”
After hearing the argument, Justice Subramonium Prasad said that what was required to be complied with in 2023 was being supplemented with material from 2026, and that the party was now seeking to take advantage of a war occurring in 2026 in support of its case.
In February 2023, the Supreme Court directed encashment of a ₹270 crore bank guarantee and ordered SpiceJet to pay ₹75 crore towards interest within a specified period, warning that non-compliance would make the award fully executable.
On Thursday, SpiceJet argued that the order passed should be in public interest, noting that it is the country’s third-largest airline.
The Delhi High Court reserved its judgment on the review plea.
Earlier on Monday, SpiceJet told the Delhi high court it could “collapse” if forced to immediately deposit ₹144.5 crore in its long-running dispute with Kalanithi Maran and KAL Airways, citing disruptions caused by the West Asia conflict and rising aviation turbine fuel prices.
KAL Airways argued that the review application was filed “to keep the sword hanging”, and said that the award should be satisfied through monetary payment, not property.
SpiceJet moved a review petition on 7 April seeking relief from the high court’s earlier direction requiring it to deposit ₹144.5 crore by 14 April. The airline also proposed to furnish a one-acre commercial property in Gurugram as security instead of making an immediate cash payment.
Rohatgi submitted that the property is unencumbered and owned by the company. SpiceJet is willing to deposit the title deeds before the court. He said the airline has already taken steps to monetize the asset, but such transactions could take several months and should not be forced into a distress sale.
“I am told that the government is bringing out a package which will grant me a chance to get loans from PSU banks on governmental sovereign security. The government will stand for security for the airlines,” he said.
KAL Airways is owned by Kalanithi Maran and the prolonged legal battle between SpiceJet and Maran has been through multiple rounds of litigation across forums. In July 2018, the tribunal rejected Maran’s claim for over ₹1,300 crore in damages but directed SpiceJet to refund ₹579 crore along with interest in relation to the warrants and preference shares.
SpiceJet maintained it has already paid about ₹730 crore to Maran and KAL Airways, including the principal amount and interest.
In January, the Delhi high court directed SpiceJet and its promoter Ajay Singh to deposit ₹144.5 crore, after recording that a total of ₹194.51 crore remained due under earlier directions. After adjusting ₹50 crore already deposited, the outstanding amount stood at ₹144.51 crore.
The dispute dates back to January 2015, when Maran and KAL Airways transferred their 58.46% stake in SpiceJet to Ajay Singh during acute financial distress for the airline. As part of the transaction, Maran and KAL Airways had infused about ₹679 crore into the airline through convertible warrants and preference shares.
Maran later alleged that these instruments were not issued by the new management and sought a refund, leading to arbitration proceedings before a three-member tribunal comprising retired Supreme Court judges.
