The Delhi High Court has issued a verdict requiring low-fare airline SpiceJet to pay ₹380 crore to Kalanithi Maran, the former promoter of the Sun Group. Additionally, the court has instructed SpiceJet to submit an affidavit detailing its assets within four weeks. The ruling represents a setback for the airline, which had recently reported a significant increase in earnings in the December quarter, but is currently facing challenges related to payments to aircraft lessors.
The High Court’s decision, dated May 29, 2023, is the culmination of a prolonged legal battle between the Maran family and the current promoter of SpiceJet, Ajay Singh. The dispute revolves around alleged breaches of contractual obligations. In 2017, Maran filed a lawsuit against SpiceJet, claiming that the airline had caused him financial losses by failing to issue convertible warrants and preference shares to him and his KAL Airways.
After an extensive court battle, SpiceJet had previously paid Maran a principal amount of Rs. 579.08 crore, but the interest portion remained unsettled. The accrued interest, which amounted to ₹242 crore as of October 2020, had increased to ₹362 crore by February 2023 and ultimately reached ₹380 crore.
A spokesperson for SpiceJet stated that the airline is already engaged in discussions with Maran and KAL Airways to achieve a comprehensive settlement. They expressed confidence in resolving the matter amicably, noting that SpiceJet had previously paid the entire principal amount as determined by an arbitral tribunal.
The Sun Group, to which Maran belongs, declined to comment on the court’s ruling. Currently, SpiceJet shares are trading at ₹26.85, experiencing a 3.95% increase.
