SC dismisses KAL Airways, Kalanithi Maran pleas against Delhi High Court order in SpiceJet case

By | July 23, 2025
SC rejects Kalanithi Maran plea in court ruling

In a decisive turn in the SpiceJet legal saga, the Supreme Court (SC) rejected Kalanithi Maran’s plea against the Delhi High Court’s ruling. This marks another chapter in the long-standing battle between the media baron and SpiceJet promoter Ajay Singh over financial disputes.

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SC Rejects Kalanithi Maran Plea: What It Means for SpiceJet

The Supreme Court on Monday dismissed the pleas filed by Kalanithi Maran and his company, KAL Airways, against a 2023 Delhi High Court judgment. This verdict favored SpiceJet and its promoter Ajay Singh, concluding a drawn-out financial and contractual dispute.

This case revolved around a share transfer agreement signed in 2015. Under this pact, Maran and KAL Airways transferred their entire shareholding in SpiceJet to Ajay Singh for a token amount of ₹2. However, they later claimed Singh failed to issue convertible warrants and preference shares worth ₹679 crore as agreed.

Background of the Dispute

In early 2015, SpiceJet was struggling with financial woes and operational setbacks. Kalanithi Maran, who then owned a majority stake, transferred the ownership to Ajay Singh as part of a revival plan. While Singh took over the airline’s management, Maran claimed he was not compensated as promised.

The Delhi High Court, in its earlier judgment, had observed that Maran failed to prove that SpiceJet or Singh were liable for the issuance of the warrants and shares. The court also ruled that the arbitral award in Maran’s favor did not stand the test of judicial scrutiny.

Now, with the Supreme Court rejecting Kalanithi Maran’s plea, that decision stands upheld.

Implications for SpiceJet and Maran

For SpiceJet, this ruling provides a much-needed respite amid financial troubles, grounded aircraft, and ongoing debt issues. The verdict removes a ₹579 crore liability that the airline would have otherwise had to pay to Maran.

On the other hand, this is a setback for Kalanithi Maran and KAL Airways, who sought to enforce the arbitral award through the courts. The Supreme Court decision essentially brings that pursuit to a legal dead-end.

Transition in Ownership and the Legal Journey

After the 2015 agreement, Maran alleged breach of contract and took the matter to arbitration. The arbitral tribunal initially ruled partially in Maran’s favor, awarding him ₹579 crore. However, SpiceJet challenged this award in the Delhi High Court, which then overturned it.

Maran subsequently moved the Supreme Court. However, during the hearing, the apex court found no reason to interfere with the High Court’s decision. It stated that the tribunal had overstepped its jurisdiction and failed to properly interpret the contractual terms.

Legal Observations by the Supreme Court

The Supreme Court bench noted that while arbitral awards must be respected, courts are within their rights to intervene if the award is legally unsustainable. In this case, the SC agreed with the Delhi High Court’s assessment that the arbitral tribunal had misapplied contract law principles.

Reactions from Legal Experts

Legal experts viewed this verdict as a reinforcement of judicial oversight over arbitration, especially in high-stakes corporate disputes. According to senior advocate Harish Salve, who was not directly involved but commented on similar rulings, “This shows that arbitral tribunals must base their awards strictly within the confines of contractual obligations.”

What Lies Ahead for SpiceJet?

While this legal hurdle is now behind the airline, SpiceJet continues to face operational and financial challenges. The company recently announced cost-cutting measures and is seeking investor interest to infuse fresh capital.

However, the ruling may make the company more attractive to potential investors by eliminating a substantial financial burden.

Conclusion: Legal Closure for a Long-Running Case

The SC’s rejection of Kalanithi Maran’s plea brings long-awaited closure to one of India’s most closely watched aviation legal disputes. For now, SpiceJet can move forward without the looming ₹579 crore liability. But the airline’s journey toward financial recovery remains ongoing.