SpiceJet seeks 4-week extension to deposit Rs 50 crore in Maran dispute

Cash-strapped SpiceJet and its promoter Ajay Singh on Monday, August 31, sought a four-week extension from the Delhi High Court to deposit Rs 50 crore with the court registry in connection with their long-running legal dispute with media baron Kalanithi Maran and Kal Airways.

Justice Subramonium Prasad, who heard the application, listed the matter for September 21, when the main case is already scheduled to come up.

Appearing for SpiceJet, senior advocate Mukul Rohatgi said the airline had received the first tranche of emergency credit support from the Central government in June, but the funds had been utilised for its operations.

He said the airline was expecting a second tranche of government support, which had not yet been received.

“I could have paid Rs 50 crore as per the undertaking given to the court but the second tranche has not materialised as yet,” Rohatgi submitted.

He requested the court to grant the airline four weeks from August 27, the deadline for depositing the first tranche of Rs 50 crore.

“My only request to the court is that the matter was kept for September 21 to test the bonafide whether this first installment is paid. It was payable by August 27. Kindly grant an extension of four weeks from August 27 for depositing the first tranche of Rs 50 crore,” he said.

The judge, however, said no order was being passed on the application on Monday and listed it for consideration on September 21.

The high court had earlier directed SpiceJet and Singh to deposit about Rs 144 crore in connection with an arbitral award arising from their dispute with Maran.

On July 13, SpiceJet had undertaken to deposit Rs 50 crore with the registry within 45 days, while agreeing to deposit the remaining Rs 94.50 crore within the subsequent 90 days.

In its latest application, the airline has also sought an extension of 45 days for depositing the Rs 94.50 crore second tranche, calculated from the expiry of the extended period for the first payment.

The development comes after the high court on May 4 dismissed review petitions filed by SpiceJet and Singh against its January 19 order directing them to deposit more than Rs 144 crore.

The Supreme Court, on May 19, directed the airline to approach the high court for an extension of time to make the deposit.

Senior advocate Jayant Mehta appeared for Maran, assisted by law firm Karanjawala & Co.

On January 19, the high court had directed SpiceJet and Singh to deposit Rs 144 crore with the court registry within six weeks against an admitted liability of Rs 194 crore arising from the arbitration award in the dispute with Maran. The time for making the deposit was subsequently extended by four weeks on March 18.

The dispute relates to the non-issuance of warrants in favour of Maran following the transfer of ownership of SpiceJet to Singh, its controlling shareholder.

The dispute dates back to February 2015, when Singh took back control of the airline amid a financial crisis.

Maran and Kal Airways had transferred their entire 35.04 crore equity shares, representing a 58.46 per cent stake in SpiceJet, to co-founder Singh for Rs 2 in February 2015.

In May 2024, a division bench of the Delhi High Court set aside a single-judge order that had upheld an arbitral award directing SpiceJet and Singh to refund Rs 579 crore, along with interest, to Maran.

The division bench allowed appeals filed by SpiceJet and Singh against the single judge's July 31, 2023 order and remanded the matter for fresh consideration by the court concerned.