In a relief for SpiceJet that sent shares sharply higher by over 3 percent on July 23, the Supreme Court has upheld a Delhi High Court order rejecting Rs 1,300 crore claim against the airline in a plea by Maran-owned KAL Airways.
Granting relief to the airline, a bench of Justices Pamidighantam Sri Narasimha and Atul S Chandurkar said, "Both the special leave petitions are dismissed." Maran-owned KAL Airways had moved apex court seeking to challenge Delhi High Court’s order that had dismissed claim for damages against SpiceJet over a share transfer dispute.
"These claims were thoroughly examined and subsequently rejected by a panel of three retired Supreme Court judges. Following this, KAL Airways and Kalanithi Maran appealed to the single judge bench of the Delhi High Court, seeking the same amount in damages, which was also rejected by the court," the airline had said in May.
SpiceJet has been facing financial challenges and aircraft grounding, which has impacted its market share. The airline has also been involved in disputes with other entities, including Credit Suisse, for which it has been ordered to make payments.
Reporting on the hearing, legal news publication Bar and Bench said the Court found appellants’ conduct lacking in bona fides and deliberately misleading. The delay in appeal by Maran and KAL Airways was not due to negligence or oversight, but a litigation strategy.
Case History
The legal dispute dates back to 2015 when Maran, along with KAL Airways had transferred their 58.46% controlling stake in SpiceJet to the airline's original founder, Ajay Singh. The transaction took place at a time of a financial crisis that had grounded the airline for several months, with Singh taking on liabilities. Maran and KAL Airways claimed they paid for convertible warrants and preference shares, which they allege were never issued, leading to an arbitration and later the case reaching the Delhi High Court in 2017. An arbitral tribunal had initially ruled in favour of KAL Airways but the award was set aside by Delhi High Court and later Supreme Court in 2024.
Revival Plans
As of March 2025, SpiceJet's networth stood at Rs 683 crore and the promoter group had completed an equity infusion of Rs 500 crore, including the final tranche of Rs 294.09 crore in the March quarter. The airline has partnered with StandardAero and Carlyle Aviation to fast-track engine overhaul and fleet restoration.
As part of its summer schedule, the airline had launched 24 new domestic flights and added three new destinations - Tuticorin, Porbandar and Dehradun. By the end of 2025, the airline has targetted a fleet size of 52 aircraft, mostly on wet or dry lease contracts.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
