SpiceJet Wins ₹1,300 Crore Damages Appeal Against Maran and KAL Airways
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Delhi High Court Dismisses Maran and KAL Airways' Appeal
On 23 May 2025, the Division Bench of the Delhi High Court dismissed an appeal filed by Kalanithi Maran and KAL Airways seeking over ₹1,300 crore in damages from SpiceJet. This decision upholds prior rulings by both an Arbitral Tribunal and a Single-Judge Bench of the Delhi High Court, which had previously rejected the claims. The verdict brings closure to a nearly decade-long legal battle between the parties.
Background of the Dispute
The conflict traces back to 2010 when Kalanithi Maran and KAL Airways acquired a controlling 58.46% stake in SpiceJet. By February 2015, amid financial challenges, they transferred their stake back to SpiceJet's original founder, Ajay Singh, for ₹2 along with a ₹1,500 crore debt liability. Maran and KAL Airways alleged they had paid ₹679 crore for warrants and preference shares that were never issued, leading to their demand for ₹1,323 crore in damages.
Arbitration and Legal Proceedings
An Arbitral Tribunal comprising three retired Supreme Court judges was constituted in 2016 to resolve the dispute. In July 2018, the tribunal rejected the ₹1,323 crore damages claim but awarded Maran and KAL Airways a refund of ₹579 crore plus interest. SpiceJet was directed to pay ₹308 crore in cash with 12% interest for 30 months and to return ₹270 crore via compulsory redeemable preference shares or cash, with failure to comply attracting 18% interest.
Both parties challenged parts of the award in the Delhi High Court. In July 2024, a Single-Judge Bench upheld the arbitral award, dismissing objections from both sides. SpiceJet appealed, but on 24 August 2024, a Division Bench refused to stay the order. Execution proceedings continued, and SpiceJet was directed to pay ₹100 crore to Maran.
Final Verdict and Market Reaction
The recent dismissal by the Division Bench reaffirms the earlier decisions, effectively bringing the legal proceedings to a close. Following the announcement, SpiceJet's share price rose over 4% during intraday trading on 26 May 2025, reaching a high of ₹45.78 on the BSE, reflecting investor confidence in the airline's improved legal and financial position.
