The Delhi High Court has dismissed an appeal filed by Kalanithi Maran and KAL Airways seeking damages exceeding ₹1,300 crore from SpiceJet.
The Division Bench reaffirmed the decisions of both the Arbitral Tribunal and a Single-Judge Bench, which had previously rejected these claims.
High Court Dismisses Kalanithi Maran’s Claims
Maran and his investment arm, KAL Airways, had initially approached an Arbitral Tribunal during a legal dispute with SpiceJet, led by Ajay Singh.
They sought over ₹1,300 crore in damages, alleging breaches related to a share sale and purchase agreement.
However, the tribunal, comprising three retired Supreme Court judges, found no violation of the agreement and ruled against Maran’s claims.
Single-Judge Bench Also Denied Relief
Following the tribunal’s decision, Maran and KAL Airways moved to the Delhi High Court’s Single-Judge Bench. The court dismissed their appeal, prompting them to escalate the matter to the Division Bench, which has now also rejected the appeal.
SpiceJet’s shares responded positively to the court’s decision. The airline’s stock rose 2.6% in morning trade on the Bombay Stock Exchange, reaching ₹44.97 per share.
In January 2015, Ajay Singh repurchased SpiceJet from Kalanithi Maran and KAL Airways after the low-cost carrier faced financial difficulties and was grounded.
Maran and KAL Airways had transferred their 58.46% stake in the airline to Singh for a nominal ₹2, while also passing on a debt burden of ₹1,500 crore.
The arbitration panel instructed Singh to reimburse Maran ₹579 crore with applicable interest, but also ruled that Maran owed ₹29 crore in penal interest to Singh and the airline.
It further noted that there had been no breach of the share sale and purchase agreement.
Kalanithi Maran’s Allegations On Warrants And Shares
Maran and KAL Airways claimed they had paid ₹679 crore to SpiceJet for issuing convertible warrants and preference shares, which the airline allegedly never issued or refunded.
Maran took the matter to the Delhi High Court in 2017, but courts at multiple levels have now dismissed the claims.
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