The Delhi High Court has rejected SpiceJet’s request for additional time to deposit ₹144.51 crore in its long-running legal dispute with former promoter Kalanithi Maran and KAL Airways. The court declined to grant another extension after the airline failed to fulfil its undertaking to deposit an initial ₹50 crore within 45 days.
Justice Vinod Kumar said repeated extensions could not be granted when SpiceJet had not complied with its own commitment. The court also rejected the airline’s proposal to provide documents relating to a Gurugram property as security instead of depositing the required amount in cash. The decision increases the pressure on SpiceJet to meet its outstanding payment obligations as it continues to navigate financial and operational challenges.
Delhi High Court Rejects SpiceJet’s Extension Plea
The latest order follows several rounds of proceedings over the amount SpiceJet owes Maran and KAL Airways. On July 13, 2026, the airline and its promoter, Ajay Singh, undertook to deposit ₹50 crore with the court registry within 45 days and pay the remaining ₹94.51 crore within 90 days.
The first instalment deadline fell on August 27, but the airline did not deposit the promised ₹50 crore. SpiceJet subsequently sought additional time, citing financial constraints and delays in receiving government-backed emergency credit support.
The court declined to provide further relief, noting that it might have considered a more flexible timeline for the second instalment if the airline had first honoured its initial commitment.
The ruling underscores the court’s focus on compliance with undertakings made during judicial proceedings. Financial difficulties may form part of a party’s submissions, but they do not automatically guarantee additional time when a court-ordered payment schedule has not been followed.
Why the court rejected the request
The court’s decision centred on three issues:
- Missed payment commitment: SpiceJet failed to deposit the initial ₹50 crore within the agreed 45-day period.
- Repeated requests for extensions: The airline had already received time to arrange the payment, but the first instalment remained unpaid.
- Property offered instead of cash: The court was not persuaded to accept the Gurugram property documents as substitute security after the airline failed to meet its initial undertaking.
The court’s written order was awaited at the time of reporting. The enforcement applications in the dispute were scheduled to be heard on November 3, 2026.
What Is the ₹144.51 Crore Dispute About?
The dispute between SpiceJet, Maran and KAL Airways dates back to 2015, when Maran and KAL Airways transferred their 58.46% stake in the airline to Ajay Singh during a period of severe financial stress at the company.
As part of the transaction, Maran had invested approximately ₹679 crore in SpiceJet through convertible warrants and preference shares. Maran later alleged that the securities promised as part of the arrangement had not been issued, leading to arbitration proceedings.
In July 2018, an arbitral tribunal directed SpiceJet to refund ₹579 crore along with interest. The parties subsequently challenged aspects of the award through several rounds of litigation.
The dispute has involved questions over the refund amount, interest, payment schedules and the enforcement of the arbitral award. The current ₹144.51 crore deposit requirement represents the outstanding amount after adjustments for sums already deposited with the court.
Timeline of the legal dispute
| Year/date | Key development |
|---|---|
| 2015 | Maran and KAL Airways transfer their 58.46% stake to Ajay Singh |
| 2018 | Arbitral tribunal directs a refund of ₹579 crore with interest |
| February 2023 | Supreme Court directs encashment of a ₹270 crore bank guarantee and payment of ₹75 crore towards interest |
| January 2026 | Delhi High Court directs deposit of the outstanding ₹144.51 crore |
| July 13, 2026 | SpiceJet undertakes to deposit ₹50 crore within 45 days and the balance within 90 days |
| October 13, 2026 | Delhi High Court rejects the request for more time |
SpiceJet has maintained that it has already paid around ₹729 crore towards the award, including interest. However, the latest proceedings concern the remaining amount that the airline and its promoter were directed to deposit.
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