The Delhi High Court has upheld its earlier order directing SpiceJet Limited to deposit approximately ₹144.51 crore with the court registry in the long-running dispute with former promoter Kalanithi Maran and KAL Airways — rejecting the airline’s review petition and imposing a cost of ₹50,000 on SpiceJet and its promoter Ajay Singh.
Justice Subramonium Prasad dismissed the review petitions filed by SpiceJet and Singh on May 4, 2026, directing them to immediately deposit ₹144.51 crore — calculated after adjusting ₹50 crore already deposited — stemming from an earlier January 19, 2026 order against an admitted liability of approximately ₹194.5 crore.
What arguments did SpiceJet make — and why did the court reject them?
SpiceJet and Ajay Singh had sought to avoid the cash deposit requirement, citing financial distress as their primary ground. The airline pointed to the ongoing West Asia conflict, liquidity challenges facing the aviation sector, and the possibility of government support as reasons why it should be permitted to offer a Gurugram commercial property as security in lieu of the cash deposit.
The court rejected these arguments, noting that SpiceJet’s financial difficulties had already been considered at earlier stages of the proceedings and did not constitute new grounds for review. The court also emphasised that the arbitration award against SpiceJet is enforceable, backed by Supreme Court orders, and that allowing property as security in place of the court-directed cash deposit would be contrary to established legal principles in enforcement proceedings.
The Maran-SpiceJet dispute: Full background
The dispute traces its origins to 2015, when Kalanithi Maran and KAL Airways sold their approximately 58% stake in SpiceJet to Ajay Singh in a share transfer agreement. The transaction gave Singh control of the airline, but subsequently led to disputes over the non-issuance of warrants and refund obligations under the agreement.
An arbitration tribunal in 2018 awarded Maran and KAL Airways approximately ₹579 crore plus interest against SpiceJet and Singh — a significant financial liability that the airline has been contesting and resisting enforcement of through multiple rounds of litigation since. The Supreme Court has intervened on multiple occasions, including ordering the encashment of bank guarantees as part of the enforcement process.
Maran’s side has claimed that the total outstanding amount — including accumulated interest over the years of litigation — now exceeds ₹400 crore, while SpiceJet contests the exact calculation of the liability. The ₹194.5 crore admitted liability against which the current deposit order was made represents a partial component of the broader dispute rather than its full resolution.
What does this mean for SpiceJet?
The court’s May 4 order adds to the financial pressure on SpiceJet at a challenging moment for the airline. The aviation sector has been navigating elevated jet fuel costs amid crude oil prices above $100 per barrel due to the Middle East war — a structural headwind that SpiceJet itself cited in its review petition. The requirement to immediately deposit ₹144.51 crore in cash with the court registry — funds that will be locked pending the dispute’s resolution — represents a meaningful liquidity drain for an airline that has been managing a constrained balance sheet.
The ₹50,000 cost imposed on SpiceJet and Ajay Singh by the court, while nominal in financial terms, signals the judiciary’s view of the review petition as lacking merit — a reputational and legal signal that further enforcement applications from the Maran side may receive similar treatment.
Disclaimer: This article is based on publicly reported legal proceedings and court orders. It is for informational purposes only and does not constitute legal or investment advice.