Supreme Court Rejects Kal Airways & Kalanithi Maran's Appeals In A Dispute Against SpiceJet

The Supreme Court today(July 23) has upheld the Delhi High Court's order, which rejected the plea of Kal Airways and former promoter of Spicejet, Kalanithi Maran, to seek damages of Rs. 1323 crores from Spicejet.

A bench comprising Justice PS Narasimha and Justice AS Chandurkar passed the order in a special leave petition challenging the Delhi High Court's order dated May 23, wherein the division bench dismissed their plea on grounds of delay.

Pronouncing the order, Justice Chandurkar said: "Both the special leave petitions are dismissed."

The dispute between them goes back to 2015, wherein Maran and his firm Kal Airways sold their entire 58.46% stake in SpiceJet to its co-founder, Ajay Singh, under a share sale and purchase agreement for a nominal consideration of INR 2 as a part of a revival scheme since the airline was facing huge losses. 

They also paid Rs. 679 crores to SpiceJet for issuing convertible warrants and preference shares. However, in 2017, Maran and his firm sued SpiceJet and its co-founder for breaching the agreement by not issuing share warrants and preference shares to him and his firm. 

The matter was then referred to arbitration, wherein the three-member retired Supreme Court judge panel in 2018 rejected Kal Airways' claim for Rs. 1323 crores but ordered a refund of Rs. 579.08 crores, with an additional interest rate of 12 p.a. on warrants and 18% p.a. on awarded sums if not paid timely. Maran's claim for restitution of 58.46% shareholding in SpiceJet was also rejected.

Both parties challenged the arbitral award before the Delhi High Court. On July 31, 2023, a single judge of Delhi High Court, Justice Chandra Dhari Singh, upheld the arbitral award requiring SpiceJet and its Chairman, Ajay Singh, to refund Rs. 270 crores plus interest to Kal Airways and Maran. This was then appealed before the division bench of the high court.

In 2024, the division bench remanded the case for reconsideration. Against this, Kal Airways and Maran approached the Supreme Court, but it was dismissed on July 26, 2024. The Court agreed with the reasoning of the Delhi High Court to remand the matter for reconsideration under Section 34 of the Arbitration and Conciliation Act, 1996.

Kal Airways and Maran then again appealed against the single judge's order, leading to the division bench dismissing their appeals on grounds of delay in May 2025. It was also held by the division bench that Kal Airways and its former promoter had suppressed material facts. Against which, they approached the Supreme Court.

Case Details: KAL AIRWAYS PRIVATE LIMITED. v. SPICEJET LIMITED AND ANR| SLP(C) No. 17270/2025

KALANITHI MARAN v SPICEJET LIMITED AND ANR.|SLP(C) No. 17306/2025

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