SC directs SpiceJet to pay entire arbitration award of ₹380 cr to Maran

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₹380 crore to the airline's former promoter Kalanithi Maran in a seven-year-old share transfer dispute. In June, the Delhi High Court had ordered the airline to pay ₹380 crore to Maran of the Sun Group. The court had also directed the airline to furnish details of its assets within four weeks.

Prior to that, on 13 February, the top court had directed SpiceJet to pay ₹75 crore against Maran's claim of ₹362.49 crore in interest dues within three months under a 2018 arbitration award. Today, the SC also dismissed pleas filed by Spicejet seeking an extension to pay ₹75 crore to Maran and his KAL Airways, and observed that filing applications is a delay tactic. A bench comprising chief justice DY Chandrachud and justice PS Narasimha observed that a clear message needs to be sent across that the orders of Supreme Court ought to be followed, especially in commercial matters.

The counsel for SpiceJet, Mukul Rohatgi, urged the Supreme Court to list the matter after 3-4 days to allow it to present its case and work out a resolution as the airline was facing financial constraints. In February 2015, Maran had transferred his entire shareholding in SpiceJet to Ajay Singh, the current chairman and managing director of the airline, after the carrier nearly went belly up in 2014-15 due to a severe cash crunch. Singh, who paid ₹2 to take over the airline, also took over SpiceJet’s liabilities of ₹1,500 crore.

As part of the agreement, Maran and Kal Airways also made payments of ₹679 crore to SpiceJet, under Singh, for issuing warrants and preference shares. However, Maran approached the Delhi high court in 2017, alleging SpiceJet had not issued convertible warrants and preference shares or returned the money. On 7 November 2020, the top