SpiceJet appeal contesting refunds paid to KAL Airways pending before Supreme Court

SpiceJet has informed the stock exchanges on Thursday, July 24, that its appeal contesting the payment of interest and premature refund of funds to Kalanithi Maran and Kal Airways, following an order of the Arbitral Court, is still pending before the Supreme Court.On July 23, the SC dismissed an appeal by Kalanithi Maran-backed Kal Airways seeking ₹1,300 crore in damages from SpiceJet. The apex court upheld a previous Delhi High Court’s order that had rejected Kal Airways’ claim.
With the SC’s latest order, the remaining issue to be decided by the court is SpiceJet’s appeal challenging the premature refund of the amount along with interest paid by the company to Marans as directed by the Arbitral Tribunal.
In July 2018, the Arbitral Tribunal had directed SpiceJet to pay ₹570 crore plus interest to Maran. The matter stems from a dispute following Maran’s sale of his shareholding of 58.46% in SpiceJet to Ajay Singh-led consortium.Also read:

SpiceJet claims refund of ₹450 crore from Kalanithi Maran after Delhi HC orderThe arbitral award was challenged by SpiceJet before the single-judge bench of the Delhi HC. In July of 2023, the single judge bench had upheld the arbitral award and directed payment to Marans, as per the arbitral award.

But in May 2024, Delhi High Court’s division bench set aside the single judge bench order. Subsequently, SpiceJet sought refunds of ₹450 crore claiming that it had made total payment of ₹730 crore to Marans, with ₹580 crore as principal and ₹150 crore as interest following the arbitral court’s order.

The company asserted that the division bench of the Delhi HC held that an earlier ruling had wrongly allowed levy of penal interest rate on SpiceJet.

It is this appeal that is now pending before the SC.

Shares of SpiceJet are trading slightly lower at ₹39.80 on BSE. The stock rose as much as 6% on July 23 after the SC dismissal of Kal Airways’ damages claim.