The Supreme Court on Wednesday dismissed the special leave petitions filed by Kal Airways and former promoter of SpiceJet Airlines, Kalanithi Maran, seeking damages worth Rs 1323 crore from SpiceJet.
The Bench of Justice PS Narasimha and Justice AS Chandurkar upheld the Delhi High Court verdict of May 23, which rejected the petitions on grounds of delay.
In February 2015, media baron Maran and his firm Kal Airways sold their entire 58.46 percent equity shares in SpiceJet, worth around Rs 35.04 crore, to SpiceJet co-founder Ajay Singh under a share sale and purchase agreement for a nominal consideration of Rs 2, as part of a revival scheme since the low-cost airline was facing huge losses. They also paid Rs 679 crore to SpiceJet for issuing convertible warrants and preference shares.
In 2017, however, Maran and his firm sued Singh and SpiceJet for breaching the agreement by not issuing share warrants and preference shares to him and Kal Airways.
The matter was referred for arbitration. On July 20, 2018, a three-member retired Supreme Court judge panel rejected Maran’s claim of damages worth Rs 1,323 crore for not issuing the warrants to him and Kal Airways. It further rejected Maran’s claim for restitution of 58.46 percent shareholding in SpiceJet.
The Tribunal, however, awarded Maran a refund of Rs 579.08 crore, with an additional interest rate of 12 percent per annum on warrants and 18 percent per annum on awarded sums if not paid timely.
Both Maran and Singh moved the High Court against the arbitral award.
On July 31, 2023, the single-judge Bench of Justice Chandra Dhari Singh ordered Spicejet Airlines and its Chairman & Managing Director Ajay Singh to refund Rs 579 crore plus interest to former promoter of airlines and Sun Group Chairman Kalanithi Maran.
In 2024, the Division Bench remanded the case for reconsideration. Kal Airways and Maran moved the Supreme Court against this verdict.
On July 26, 2024, a single-judge Bench of the Apex Court rejected their appeals and remanded the matter for reconsideration under Section 34 of the Arbitration and Conciliation Act, 1996.
Kal Airways and Maran challenged this verdict. In May 2025, a Division Bench dismissed their applications on grounds of delay. It further accused the firm and its former promoter of suppressing material facts from the Court.
Maran appealed against this judgment in the present petition.
The post Kal Airways-SpiceJet dispute: Supreme Court dismisses Kalanithi Maran plea seeking damages worth Rs 1323 crore appeared first on India Legal.