SpiceJet must pay Marans entire ₹380 crore, says SC
NEW DELHI : The Supreme court on Friday directed budget airline SpiceJet to pay the entire arbitral amount of ₹380 crore to former promoter Kalanithi Maran in their legal dispute, a development which may impact the debt-laden carrier further. A bench presided over by Chief Justice D.Y. Chandrachud and comprising Justice P.S.
Narasimha dismissed Spicejet’s plea seeking additional time to pay the ₹75 crore to Maran and Kal Airways, as directed by the apex court on 13 February. Besides, the bench said that a clear message should be sent to ensure the court’s orders are followed, especially in commercial matters. Spicejet’s counsel Mukul Rohatgi requested the court to list the matter after 3-4 days so that he can present the airline’s case and explore potential resolutions, in view of the financial stress the airline is facing.
CJI Chandrachud said the argument presented in the application by the airline for an extension of time was unreasonable, aimed at delaying the execution of the award and evading payment despite its directives. Subsequently, the apex court dismissed Spicejet’s plea and ordered it to settle the entire arbitral award immediately. Legal experts said Spicejet does not have any option, but to pay the full amount to the Marans.
“SpiceJet has no recourse against the SC order and will have to pay Kalanithi Maran. However, its ability to make this huge payment is in question," said Dhiraj Mhetre, partner, Khaitan Legal Associates. The airline is grappling with a severe financial crisis and has struggled to recover post-covid, despite India’s aviation sector witnessing remarkable growth in passenger traffic.
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