The long-running legal dispute between SpiceJet and its former promoter Kalanithi Maran has taken another turn, with the airline requesting more time from the Delhi High Court to deposit ₹144 crore. The amount is part of an arbitration award linked to a financial dispute stemming from a 2015 share transfer agreement between the parties.
SpiceJet Warns of Financial Collapse
SpiceJet has told the court that forcing an immediate payment could severely impact its operations and potentially lead to a collapse. The airline, already dealing with financial stress, argued that its cash flow situation makes it difficult to comply with the deadline. Legal representatives emphasized that attaching accounts for non-payment could disrupt the entire business.
Request for Relief and Alternatives
In its plea, SpiceJet has sought additional time to arrange the funds. Earlier, the airline had also proposed submitting an immovable property as security instead of depositing cash, but the court rejected this request. The airline is now exploring ways to monetize assets without resorting to distress sales, which could significantly reduce their value.
Background of the Dispute
The case dates back to 2015, when Kalanithi Maran and KAL Airways transferred their stake in SpiceJet to current promoter Ajay Singh during a financial crisis. Disagreements over financial obligations, including warrants and interest payments, led to arbitration proceedings. Courts have since directed SpiceJet to pay dues, with ₹144 crore being part of the remaining amount.
Court Proceedings Continue
The Delhi High Court has been hearing the matter and is considering SpiceJet’s plea for more time. The case has seen multiple rounds of litigation, including intervention by the Supreme Court, which upheld the deposit order earlier. The outcome of the current hearing could significantly impact the airline’s financial stability and future operations.
