Delhi High Court Upholds Compliance Order for SpiceJet Amid Ongoing Arbitration

Original: Can’t evade compliance by filing review plea, Delhi HC tells, SpiceJet, promoter

Hindustan Times•Apr 7, 20262 min

In a Nutshell

The Delhi High Court has ruled that budget airline SpiceJet and its promoter, Ajay Singh, must comply with a March 18 order to deposit ₹144.5 crore in an arbitration dispute with Kalanithi Maran and KAL Airways. The court emphasized that filing review petitions does not exempt them from compliance.

Key Points

01SpiceJet must deposit ₹144.5 crore as ordered by the Delhi High Court.
02The order is part of an ongoing arbitration dispute with Kalanithi Maran and KAL Airways.
03SpiceJet has acknowledged a total liability of ₹194.51 crore but has only paid ₹50 crore so far.
04The dispute dates back to 2015 when Singh took over SpiceJet from Maran.
05The court has adjourned the matter to Monday for further consideration.

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Full Summary

The Delhi High Court has mandated that SpiceJet, a budget airline, and its promoter Ajay Singh must comply with a previous order to deposit ₹144.5 crore in an arbitration case involving Kalanithi Maran and KAL Airways. Justice Subramonium Prasad stated that filing review petitions does not provide a means to avoid compliance with the court's directives. This ruling follows a March 18 order that rejected SpiceJet's request to substitute the deposit with immovable property in Gurugram. SpiceJet has acknowledged an outstanding liability of ₹194.51 crore but has only paid ₹50 crore to date. The ongoing dispute traces back to 2015, when Singh acquired SpiceJet from Maran, who claims he was not compensated as per the terms of their agreement. The court has adjourned the case to Monday for further proceedings.

Key Figures

₹144.5 crore

Amount SpiceJet must deposit as per court order

₹194.51 crore

Total acknowledged liability of SpiceJet

₹50 crore

Amount already paid by SpiceJet in two installments

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Why It Matters

This ruling could affect SpiceJet's financial stability and its ability to operate effectively, potentially impacting employees and customers if the airline faces further financial strain.

Who is affected

SpiceJet employees, customers, and stakeholders.

What to know

SpiceJet must ensure compliance with the court order to avoid further legal complications.

FAQ

SpiceJet is required to deposit ₹144.5 crore.

The dispute dates back to 2015 when Ajay Singh took over SpiceJet from Kalanithi Maran, who claims he was not compensated as agreed upon.

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