A bench of Justices P.S. Narasimha and Alok Aradhe declined to interfere with the high court’s 19 January order and rebuked the company over repeated rounds of litigation in the matter.
During the hearing, senior advocate Amit Sibal, appearing for SpiceJet, urged the court not to impose costs. The bench, however, remarked that there had been “tons and tons of litigation” and that the court was “never seeing the end of litigation” in the arbitral dispute, before imposing ₹1 lakh in costs. It also indicated that the amount could be increased to ₹2 lakh if such pleas continued.
The refusal to grant relief means SpiceJet must comply with the high court’s 19 January order to deposit ₹144.51 crore in six weeks.
Queries emailed to SpiceJet remained unanswered till press time.
High court findings
In its 19 January order, Justice Subramonium Prasad of the Delhi high court recorded that SpiceJet had admitted ₹194.51 crore was due and payable under earlier Supreme Court directions. After adjusting ₹50 crore already deposited, ₹144.51 crore remained outstanding.
The high court noted that the Supreme Court had passed clear directions in February and July 2023 requiring compliance within specified timelines, and held that those directions were not fully adhered to.
Rejecting SpiceJet’s contention that enforcement should await the final outcome of its challenges to the arbitral award, the court held that Supreme Court orders cannot be kept in limbo. Referring to Article 144 of the Constitution, which requires all authorities to act in aid of the Supreme Court, the court said continued delay undermines judicial authority.
It accordingly directed SpiceJet and Ajay Singh to deposit ₹144.51 crore with the registry within six weeks.
Origins of the dispute
The dispute dates back to January 2015, when Kalanithi Maran and KAL Airways transferred their 58.46% stake in SpiceJet to Ajay Singh under a share sale and purchase agreement, at a time when the airline was facing acute financial distress.
As part of the arrangement, Maran and KAL Airways infused approximately ₹679 crore into the airline towards issuance of convertible warrants and preference shares. Maran later alleged that these instruments were not issued under the new management and sought a refund.
The matter was referred to arbitration under a three-member tribunal comprising retired Supreme Court judges.
In July 2018, the tribunal rejected Maran’s ₹1,323 crore damages claim but directed SpiceJet to refund ₹579 crore, along with interest, relating to the warrants and preference shares.
Both sides challenged aspects of the award before the Delhi high court under the Arbitration and Conciliation Act, triggering a prolonged phase of enforcement petitions, appeals and interim orders.
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.
While substantive challenges continued, enforcement proceedings progressed in parallel, with Maran alleging repeated non-compliance with payment directions.
The dispute has remained a significant legal and financial overhang for SpiceJet, which has in recent years faced liquidity pressures, aircraft groundings due to unpaid dues, and insolvency petitions from certain lessors and creditors.
