Supreme Court Orders SpiceJet to Deposit ₹144 Crore; Airline Says Operations Continue Normally
The Supreme Court of India has directed low-cost carrier SpiceJet to deposit ₹144 crore as security while ongoing legal proceedings related to an arbitration dispute continue. The airline has confirmed that it will comply with the court’s order and emphasized that its flight operations and business activities remain unaffected.
Apex Court Upholds Earlier Direction
The Supreme Court declined to intervene in prior instructions requiring the airline to deposit the specified amount. The funds will be held by the court until a final decision is delivered in the matter.
SpiceJet clarified that the ₹144 crore is a court-mandated security deposit and should not be interpreted as a final liability. The airline stated it is reviewing the order and will continue to pursue available legal remedies under the judicial process.
Origin of the Legal Dispute
The case relates to a long-running dispute over a share transfer agreement involving SpiceJet, its promoter Ajay Singh, KAL Airways, and former airline promoter Kalanithi Maran.
Over the course of the proceedings, SpiceJet has already paid ₹730 crore to Kalanithi Maran and KAL Airways. This amount includes ₹580 crore as principal and ₹150 crore in interest payments.
The latest court directive pertains to the remaining contested amount under arbitration-related proceedings.
Company Expects Potential Refund
SpiceJet expressed confidence in its legal position and indicated that it expects a potential refund of ₹449 crore, subject to the outcome of the case.
Notably, damage claims exceeding ₹1,300 crore filed by KAL Airways and Kalanithi Maran have already been dismissed, with those rulings reaching finality. Additionally, legal challenges against the arbitral award have also been rejected.
The Delhi High Court is currently hearing SpiceJet’s plea seeking refunds. According to the airline, the court has already made preliminary observations that appear to support its stance.
No Impact on Daily Operations
SpiceJet reiterated that the deposit requirement will not affect its financial stability or operational schedule. The airline assured passengers, investors, and stakeholders that its services continue as usual.
The matter remains under judicial review, with further hearings expected as the legal process unfolds.
Summary
The Supreme Court has directed SpiceJet to deposit ₹144 crore as security in an ongoing arbitration dispute linked to a share transfer agreement involving KAL Airways and Kalanithi Maran. The airline clarified that the deposit is not a final liability and confirmed that operations remain unaffected. SpiceJet has already paid ₹730 crore in the case and is pursuing claims for potential refunds before the Delhi High Court.
Disclaimer
This article is based on court proceedings and corporate disclosures. Legal matters are subject to ongoing hearings and final judicial determination. The publication is not responsible for any inadvertent errors or omissions.