The Delhi High Court on Thursday reserved its order on review petitions filed by SpiceJet and its promoter, Ajay Singh. The petitions seek a reconsideration of a prior judicial direction requiring the airline to deposit ₹144 crore in its long-standing legal battle with media mogul Kalanithi Maran and Kal Airways.
Justice Subramonium Prasad closed the matter for orders after hearing extensive arguments from both sides regarding the airline’s financial health and the nature of security required in high-stakes commercial disputes.
The dispute traces back to February 2015, when Kalanithi Maran and Kal Airways transferred their 58.46% stake (35.04 crore equity shares) in SpiceJet to Ajay Singh for a nominal sum of ₹2 during a period of severe financial crisis for the carrier. The legal conflict centeres on the alleged non-issuance of warrants in favor of Maran following this transfer of ownership.
In an earlier development on January 19, the court had directed the petitioners to deposit ₹144 crore against an admitted liability of ₹194 crore. While the court granted a four-week extension on March 18, SpiceJet and Singh moved the current review petitions to contest the cash deposit mandate.
Senior Advocate Mukul Rohatgi, representing SpiceJet and Ajay Singh, argued that the airline is currently facing “financial distress,” exacerbated by external factors such as the ongoing conflict in West Asia.
Rohatgi emphasized that forcing a cash deposit could jeopardize the airline’s operations. “The government will give me some lifeline. I will give that lifeline to him. At the end of the day, public interest also demands that we don’t shut down one of the three airlines,” he stated.
The petitioners proposed offering a commercial property in Gurugram as security instead of liquid cash, noting that the Union Government was willing to extend assistance to the carrier. Rohatgi further contended that the law does not strictly mandate security to be in the form of cash, suggesting that properties, bonds, or undertakings are legally viable alternatives.
Senior Advocate Jayant Mehta, appearing for Kalanithi Maran and Kal Airways, strongly opposed the review. He argued that the grounds of financial distress cited by the airline had already been evaluated and dismissed by the Supreme Court of India.
The respondents maintained that the direction for a cash deposit was justified given the history of the litigation and the admitted liabilities involved.
The current proceedings follow a significant ruling in May 2024, where a division bench of the Delhi High Court set aside a single-judge order that had upheld an arbitral award. That award had directed SpiceJet to refund ₹579 crore plus interest to Maran. The division bench, comprising Justices Yashwant Varma and Ravinder Dudeja, remanded the matter back for fresh consideration, which forms the backdrop for the current procedural skirmishes over security deposits.
