The Supreme Court on Friday dismissed a petition filed by SpiceJet Limited and its chairman Ajay Singh challenging a Delhi High Court direction to deposit Rs 144.5 crore in their long-running financial dispute with media baron Kalanithi Maran and KAL Airways Pvt Ltd. A bench of Justices PS Narasimha and Alok Aradhe rejected the plea and imposed a cost of Rs 1 lakh on Singh.
The ruling marks the latest development in a corporate battle that has continued for over a decade, stemming from SpiceJet’s financial crisis in 2014-15. At the time, Maran and KAL Airways were the majority stakeholders with a combined 58.46 percent shareholding.
If you enjoyed reading this article, you can help support our journalism by adding OHeraldo as a preferred source.
In January 2015, the parties signed a Share Sale and Purchase Agreement under which Maran and KAL Airways transferred their stake to Ajay Singh for a nominal Rs 2. The deal involved warrants and cumulative redeemable preference shares with a funding commitment of about Rs 450 crore.
Disputes later arose over compliance with the agreement, leading to arbitration. In July 2018, the arbitral tribunal ruled in favour of Maran and KAL Airways, ordering a refund of Rs 308.21 crore plus interest.
Subsequent litigation saw partial payments made, but the Delhi High Court noted that Rs 194.51 crore remained due towards interest. After adjusting earlier deposits, it directed SpiceJet and Singh to deposit the remaining Rs 144.5 crore — an order now upheld by the Supreme Court.
