Why SC Pulled Up SpiceJet, Fined Ajay Singh in ₹144 Cr Maran Case | Explained

In what seems like a potentially conclusive end to the long-drawn dispute between SpiceJet and Kalanithi Maran, the Supreme Court of India dismissed a petition filed by the airline and its Chairman Ajay Singh. The top court upheld a Delhi High Court decision directing the airline to pay ₹144.5 crore to Maran and KAL Airways. It also imposed a ₹1 lakh litigation cost on Singh.

A bench of Justices P.S. Narasimha and Alok Aradhe rebuked the airline over the “tons and tons of litigation” in the matter and observed that the dispute, which began in arbitration, was “never seeing the end of litigation”. According to a Mint report, the court also indicated that the cost could be increased to ₹2 lakh if such pleas continue.

Why SC Took Such a Tough Stance

The plea before the Supreme Court concerned a Delhi High Court decision, which itself stemmed from an earlier ruling by the apex court asking the airline to pay ₹194.51 crore. Of this, ₹50 crore had already been deposited, leaving ₹144.51 crore outstanding.

The case dates back to the airline’s 2015 financial distress, when its co-promoters Maran and KAL Airways transferred their 58.46% stake in SpiceJet to Singh under a share sale and purchase agreement. Under the deal, Singh paid a nominal consideration of ₹2, coupled with an arrangement for the infusion of committed financial support aggregating to ₹450 crore. It also included the issuance of warrants and non-convertible redeemable cumulative preference shares (CRPS) worth ₹679 crore.

The aim was to save SpiceJet from “acute financial distress and imminent cessation of operations”.

However, Maran later alleged that these instruments were not issued under the new management, prompting him to approach the Delhi High Court in 2017 seeking a refund. As the original agreement included an arbitration clause, the case was referred to a three-member arbitral tribunal. In July 2018, the tribunal rejected Maran’s claim for ₹1,323 crore in damages but directed SpiceJet to refund ₹579 crore, along with interest, related to the warrants and preference shares.

Earlier in 2016, the Delhi High Court had ordered SpiceJet to deposit ₹579 crore. This was later modified to a ₹329 crore bank guarantee and ₹250 crore in cash. Appeals against this order were dismissed by both the High Court and the Supreme Court.

Following arbitration, SpiceJet was directed to refund about ₹308 crore along with 12% annual interest from November 2015. Both sides challenged parts of the award before the Delhi High Court.

In February 2023, the Supreme Court ordered that a ₹270 crore bank guarantee be encashed and paid to Maran and KAL Airways, along with ₹75 crore in interest.

Later in 2023, the High Court upheld the refund order. However, in May 2024, a division bench sent the matter back to a single judge for fresh review, putting part of the liability on hold.

Maran and KAL Airways moved the Supreme Court against this decision, but their plea was dismissed in July 2024. In July 2025, the Supreme Court also rejected Maran’s separate claim for ₹1,323 crore in damages.

The case then returned to the High Court for enforcement proceedings.

SpiceJet Needs to Pay ₹144 Crore to Maran

SpiceJet later stated it had paid ₹579 crore towards the principal and ₹100 crore towards interest to Maran and KAL Airways. However, Maran’s side argued that nearly ₹144.5 crore in interest still remains unpaid.

In January, the Delhi High Court also observed that the Supreme Court’s 2023 payment and compliance directions had not been fully followed. Justice Subramonium Prasad noted that SpiceJet had acknowledged ₹194.51 crore as payable under directions issued by the Supreme Court. After accounting for the ₹50 crore already deposited, a balance of ₹144.51 crore remains unpaid.

The Delhi High Court dismissed SpiceJet’s request to delay enforcement until its challenge to the arbitral award is decided, stating that compliance with Supreme Court orders cannot be put on hold.

Citing Article 144 of the Constitution, the court emphasised that all authorities are duty-bound to act in support of the Supreme Court’s rulings and that prolonged non-compliance undermines judicial authority.

The High Court therefore directed SpiceJet to deposit the remaining ₹144.51 crore within six weeks, an order that was upheld by the Supreme Court on Friday. The airline has now been warned against further litigation in the matter, with the court upholding the High Court’s direction to deposit the remaining amount.