SpiceJet Appeals for Financial Relief Amid Dispute with Former Promoter
SpiceJet seeks relief from ₹144.5 crore deposit in Maran dispute case
Business Standard
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SpiceJet, facing a ₹144.5 crore (approximately $17.4 million USD) deposit requirement in a dispute with former promoter Kalanithi Maran, has requested the Delhi High Court for urgent relief. The airline warns that compliance could lead to operational disruptions and financial collapse, as it works to stabilize its finances.
- 01SpiceJet is seeking relief from a ₹144.5 crore deposit mandated by the Delhi High Court.
- 02The airline argues that the deposit could lead to operational disruptions and financial distress.
- 03The dispute originates from a 2015 share transfer agreement involving former promoter Kalanithi Maran.
- 04SpiceJet claims it is taking steps to stabilize its finances, including raising funds.
- 05The High Court will consider the request for interim relief on April 15.
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On Monday, SpiceJet, a low-cost airline in India, requested the Delhi High Court for urgent relief from a directive to deposit ₹144.5 crore (approximately $17.4 million USD) related to an ongoing dispute with former promoter Kalanithi Maran and KAL Airways. Senior Advocate Mukul Rohatgi, representing SpiceJet, argued that the airline's current financial situation makes it impossible to comply with the deposit requirement without risking operational disruptions. He warned that enforcing this order could lead to grounding flights and jeopardizing the airline's viability. The dispute traces back to a 2015 share transfer agreement, which has led to prolonged litigation and arbitration proceedings favoring the Marans. While SpiceJet is actively working to stabilize its finances and clear dues, the Marans insist on enforcing the award, claiming that the airline has delayed compliance for years. The Delhi High Court is set to review the request for interim relief on April 15.
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If the deposit is enforced, it could lead to significant operational disruptions for SpiceJet, affecting flights and potentially leading to job losses.
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