Delhi HC Orders SpiceJet To Pay Rs 380 Cr To Sun Group’s Maran

The Delhi High Court has issued a directive to low-cost airline SpiceJet, ordering them to pay Rs 380 crore to their former promoter, Kalanithi Maran of the Sun Group. The court has also asked SpiceJet to submit an affidavit detailing its assets within four weeks. 

This ruling poses a setback for the airline, which recently reported a surprising four-fold increase in earnings to Rs 106.8 crore in the December quarter. The airline is currently embroiled in a dispute with aircraft lessors regarding payments. 

The High Court’s decision, dated 29 May 2023, stems from a longstanding legal battle between the Maran family and the current promoter, Ajay Singh, as well as SpiceJet, concerning contractual obligations. In 2017, Maran filed a lawsuit against SpiceJet, alleging that the airline had caused financial losses by failing to issue convertible warrants and preference shares to him and his KAL Airways. 

Following a prolonged court battle, SpiceJet had already paid Maran a principal amount of Rs 579.08 crore, but the interest portion remained outstanding. The interest initially amounted to Rs 242 crore in October 2020, which subsequently increased to Rs 362 crore by February 2023, ultimately reaching Rs 380 crore. 

A spokesperson for SpiceJet stated that the airline is currently engaged in discussions with Maran and KAL Airways to reach a comprehensive settlement. They expressed confidence in resolving the matter amicably, highlighting that the airline had already paid the entire principal amount previously awarded by an arbitral tribunal.