SpiceJet Seeks Delhi High Court Extension to Deposit ₹50 Crore in Kal Airways Dispute

NEW DELHI: SpiceJet and its promoter, Ajay Singh, approached the Delhi High Court on Monday seeking additional time to deposit ₹50 crore with the court registry. The deposit is connected to an ongoing legal dispute involving media baron Kalanithi Maran and Kal Airways.

Justice Subramonium Prasad heard the application and listed the matter for September 21, the date already fixed for the main case. The judge stated that no orders would be passed on Monday.

During the proceedings, SpiceJet’s counsel submitted that the airline received the first tranche of emergency credit support from the Central government in June, which was utilized for operations. Senior advocate Mukul Rohatgi, representing SpiceJet, informed the court that the company expected a second tranche of funds from the government, but it has not yet materialized.

“I could have paid ₹50 crore as per the undertaking given to the court but the second tranche has not materialised as yet,” SpiceJet's counsel submitted to the court, requesting a four-week extension from August 27 to deposit the first tranche.

In its fresh application, the cash-strapped airline also requested an extension for the subsequent tranche of ₹94.50 crore by 45 days, following the expiry of the extended period granted for the first payment. On July 13, SpiceJet had assured the court that it would deposit ₹50 crore within 45 days and the remaining ₹94.50 crore within the following 90 days.

The high court had previously directed SpiceJet and Singh to deposit around ₹144 crore in the case, arising from an arbitral award concerning their dispute with Maran. On May 19, the Supreme Court had advised the airline to approach the high court for an extension of time to complete the deposit.

Senior advocate Jayant Mehta appeared for Kalanithi Maran, alongside the law firm Karanjawala & Co.

The legal battle stems from a long-standing dispute regarding the non-issuance of warrants in favor of Maran after the transfer of ownership to Singh in February 2015. Maran and Kal Airways had transferred their 58.46 percent stake in SpiceJet to Singh for ₹2 during a financial crisis at the carrier. In May 2024, a division bench of the high court set aside a single judge bench order that had previously asked SpiceJet and Singh to refund ₹579 crore plus interest, remanding the matter back to be considered afresh.

"Cash flow management and liquidity remain critical challenges for companies navigating complex legacy legal disputes. When businesses rely heavily on external funding or government credit support to meet court-mandated financial obligations, any delay in fund realization can severely impact compliance and operational stability. For business leaders and entrepreneurs, maintaining transparent communication with judicial bodies and proactively managing financial contingencies are essential when dealing with binding liabilities." — Dr. Shishir Gupta, Founder & CEO, StartupLanes