SpiceJet faces mounting legal pressure after the Supreme Court upheld a Rs. 144.5 crore deposit directive and imposed litigation costs. The ruling underscores judicial scrutiny in high-value corporate disputes. The court also imposed a cost of Rs. 1 lakh for prolonging the litigation.
The Supreme Court on Friday (February 27, 2026), refused to stay a Delhi high court order directing the airline and its promoter Ajay Singh to deposit Rs. 144.51 crore in its long-running arbitration dispute with KAL Airways Pvt. Ltd and Kalanithi Maran.
A bench of Justices P.S. Narasimha and Alok Aradhe declined to interfere with the high court’s 19 January order and rebuked the company over repeated rounds of litigation in the matter.
Senior advocate Amit Sibal, appearing for SpiceJet, urged the court not to impose costs. The bench, however, remarked that there had been “tons and tons of litigation” and that the court was “never seeing the end of litigation” in the arbitral dispute, before imposing Rs. 1 lakh in costs. It also indicated that the amount could be increased to Rs. 2 lakh if such pleas continued.
Referring to Article 144 of the Constitution, which requires all authorities to act in aid of the Supreme Court, the court said continued delay undermines judicial authority.
In its 19 January order, Justice Subramonium Prasad of the Delhi high court recorded that SpiceJet had admitted Rs. 194.51 crore was due and payable under earlier Supreme Court directions. After adjusting Rs. 50 crore already deposited, Rs. 144.51 crore remained outstanding.
The high court noted that the Supreme Court had passed clear directions in February and July 2023 requiring compliance within specified timelines, and held that those directions were not fully adhered to.
The dispute dates back to January 2015, when Kalanithi Maran and KAL Airways transferred their 58.46% stake in SpiceJet to Ajay Singh under a share sale and purchase agreement, at a time when the airline was facing acute financial distress.
Maran and KAL Airways infused approximately Rs. 679 crore into the airline towards issuance of convertible warrants and preference shares. Maran later alleged that these instruments were not issued under the new management and sought a refund.
The matter was referred to arbitration under a three-member tribunal comprising retired Supreme Court judges.