Blitz Bureau
NEW DELHI: The Supreme Court on February 27 dismissed a petition filed by SpiceJet Limited and its chairman Ajay Singh challenging a Delhi High Court order directing the airline to deposit Rs 144.5 crore in a long-running financial dispute with media baron Kalanithi Maran and KAL Airways Pvt Ltd. A bench comprising Justices PS Narasimha and Alok Aradhe rejected the plea and imposed costs of Rs 1 lakh on Singh.
The ruling marks the latest chapter in a corporate dispute that has spanned more than a decade, tracing its origins to the near-collapse of SpiceJet in 2014-15 and the emergency financial restructuring that followed. The case dates back to January 2015, when SpiceJet was facing a severe financial crisis that threatened to ground operations. At the time, Kalanithi Maran and KAL Airways were the promoters and majority shareholders, holding a combined 58.46% stake in the airline.
To rescue the carrier, the parties entered into a Share Sale and Purchase Agreement (SSPA) under which Maran and KAL Airways agreed to transfer their entire shareholding to Ajay Singh for a nominal consideration of Rs 2.
The agreement involved the issuance of warrants and cumulative redeemable preference shares (CRPS), with an overall funding commitment estimated at approximately Rs 450 crore. However, disputes later emerged over whether both sides had fulfilled their respective obligations under the SSPA, ultimately leading to arbitration proceedings. In July 2018, a three-member arbitral tribunal ruled in favour of Mr Maran and KAL Airways, directing SpiceJet and Mr Singh to refund Rs 308.21 crore along with interest at 12% per annum from November 2015.
