Price range airline SpiceJet advised the Delhi excessive court docket on Tuesday that it faces a extreme liquidity crunch and is unable to deposit ₹144.5 crore as directed in its ongoing arbitration dispute with Kalanithi Maran and KAL Airways Pvt. Ltd.
Nearly 40% of SpiceJet’s flights to Gulf locations have been cancelled because of the ongoing conflict, worsening its monetary place, the provider stated in a submission made earlier than a bench of Justice Subramonium Prasad.
SpiceJet had filed a recent plea in search of aid from the path to deposit ₹144 crore inside six weeks to adjust to its cost obligations to Maran and KAL Airways.
Even earlier than the conflict in Iran, SpiceJet had a liquidity crunch as a result of it suffered losses, senior counsel Amit Sibal submitted.
“We’re not in monetary misery—I’m not saying that. However we do have a liquidity subject,” Sibal stated.
SpiceJet and its chairman Ajay Singh additionally sought modification of the court docket’s path, proposing to furnish an immovable property price about ₹148 crore as safety as an alternative of constructing an upfront money deposit.
“We’ve got unencumbered safety and now we have based mostly the valuation on that of a registered valuer. I’ve the unique title deeds with me. This was initially encumbered, however it was launched to me, and subsequently I’ve the unique title deeds and may deposit them with the registry,” Sibal advised the court docket.
The court docket is predicted to proceed listening to SpiceJet’s plea on Wednesday.
The recent utility was filed on 6 March after the Supreme Court docket on 27 February refused to remain the Delhi excessive court docket’s order directing the airline and its promoter Ajay Singh to deposit ₹144.51 crore. The apex court docket imposed a price of ₹1 lakh on the airline for prolonging the litigation.
Admission of dues
The Supreme Court docket’s refusal meant SpiceJet was required to adjust to the excessive court docket’s 19 January order inside six weeks, which prompted the airline to file the recent plea in search of to furnish property as an alternative of money.
In its 19 January order, the excessive court docket recorded that SpiceJet had admitted ₹194.51 crore was due and payable beneath earlier Supreme Court docket instructions. After adjusting ₹50 crore already deposited, ₹144.51 crore remained excellent.
The court docket famous that the Supreme Court docket had issued clear instructions in February and July 2023 requiring compliance inside timelines and held that these instructions weren’t absolutely adhered to.
Electronic mail queries despatched to SpiceJet in search of affirmation and response on the submissions made earlier than the Delhi excessive court docket remained unanswered till publishing time.
SpiceJet shares have declined about 16% to this point in 2026.
The dispute dates again to January 2015, when Kalanithi Maran and KAL Airways transferred their 58.46% stake in SpiceJet to Ajay Singh when the airline confronted acute monetary misery. As a part of the association, Maran and KAL Airways infused about ₹679 crore into the airline in direction of the issuance of convertible warrants and choice shares.
Maran later alleged that these devices weren’t issued by the brand new administration and sought a refund. The matter was referred to arbitration earlier than a three-member tribunal comprising retired Supreme Court docket judges.
In July 2018, the tribunal rejected Maran’s ₹1,323 crore damages declare however directed SpiceJet to refund ₹579 crore, together with curiosity, associated to the warrants and choice shares.
Either side challenged elements of the award earlier than the Delhi excessive court docket, resulting in a chronic part of enforcement proceedings, appeals and interim orders earlier than the excessive court docket and the Supreme Court docket.
SpiceJet, nevertheless, maintains it has already paid about ₹730 crore to Maran and KAL Airways, together with the principal quantity of ₹579 crore and about ₹150 crore in direction of curiosity.
The dispute stays a major authorized and monetary overhang for the airline, which has in recent times confronted liquidity strain, plane grounding because of unpaid dues, and insolvency petitions from lessors and collectors.