The Supreme Court on Tuesday allowed SpiceJet and its Managing Director Ajay Singh to approach the Delhi High Court again in their long-running arbitration dispute with Kalanithi Maran and KAL Airways.
The airline cited a recent government emergency credit line guarantee scheme for the aviation sector in view of the West Asia oil crisis.
A Bench of Justices PS Narasimha and Alok Aradhe said, “We permit the petitioners to approach the High Court on the basis of the subsequent developments, such as the governmental order dated 5/5/2026.”
The Court further noted that the subsequent development concerned a policy decision relating to emergency credit line guarantees and said that the High Court may consider the request in view of the Section 34 petition being listed for final disposal on July 18.
The matter is rooted in a dispute from 2015, involving the rescue of SpiceJet when it was facing severe financial distress and risked shutting down operations.
Kalanithi Maran and Kal Airways were the promoters and majority shareholders of the airline, holding a 58.46 per cent stake. They entered into an agreement with SpiceJet in January 2015, under which they agreed to transfer their entire shareholding to Ajay Singh for a nominal consideration of ₹2.
The transaction was coupled with a broader financial support arrangement involving the issuance of warrants, cumulative redeemable preference shares (CRPS) and an overall funding commitment of about ₹450 crore. Disputes later arose over the performance of reciprocal obligations under the agreement, leading to arbitration.
In July 2018, a three-member arbitral tribunal directed SpiceJet and Ajay Singh to refund ₹308.21 crore to Maran and KAL Airways, along with interest at 12 per cent per annum from November 2015.
Both sides filed challenges under Section 34 of the Arbitration and Conciliation Act, 1996, while enforcement proceedings were initiated before the Delhi High Court and the Supreme Court.
The High Court eventually directed SpiceJet to deposit ₹579 crore as an interim measure. This was modified in appeal to permit a ₹329 crore bank guarantee and a ₹250 crore cash deposit. In 2019, the ₹250 crore was released to the decree holders and a further ₹58.21 crore was paid from the bank guarantee.
19/05/2026 Bar and Bench