SpiceJet Vs Maran: Delhi HC to begin hearing fresh challenge to arbitral award in August

SpiceJet's dispute with Kalanithi Maran not over yet

The Delhi High Court will likely begin hearing afresh from August 12 a SpiceJet plea that challenges the arbitral award asking the cash-strapped airline to pay Rs 270 crore and interest to media baron Kalanithi Maran.

The case came up for hearing on May 28 before Justice Dinesh Kumar Sharma after a two-judge bench on May 17 asked the judge to consider the case afresh.

Appearing for SpiceJet, senior advocate Amit Sibal urged the court to list the case along with the execution petition filed by Maran for recovery of the dues.

On May 17, a division bench of the Delhi High Court set aside the order upholding the validity of the arbitral award against SpiceJet.

A bench of justices Yashwant Varma and Ravinder Dudeja passed the order on a plea file by SpiceJet's chairman and managing Director (CMD) Ajay Singh and the airline against a single-judge order which affirmed the award in July 2023.

“The Section 34 petitions shall in consequence stand restored upon the Board of the appropriate Court for being considered afresh and bearing in mind the observations rendered hereinabove,” the judgment said.

Brief facts

In February 2015, Maran and KAL Airways, his investment vehicle, transferred their 58.46 percent stake in SpiceJet to Singh. A co-founder of SpiceJet, Singh also took on the airline’s liabilities of around Rs 1,500 crore.

Maran and KAL Airways said they paid SpiceJet Rs 679 crore for issuing warrants and preference shares. Maran, however, alleged that the warrants and preference shares were not allotted and initiated arbitration proceedings against SpiceJet and Singh.

In July 2018, an arbitration panel rejected Maran’s claim of damages of Rs 1,323 but awarded him a refund of Rs 579 crore plus interest.