The matter is rooted in a dispute from 2015, involving the rescue of SpiceJet when it was facing severe financial distress and risked shutting down operations.
Kalanithi Maran and Kal Airways were the promoters and majority shareholders of the airline, holding 58.46 per cent stake. They entered into a Share Sale and Purchase Agreement (SSPA) with SpiceJet in January 2015. Under this SSPA, Maran and Kal Airways agreed to transfer their entire shareholding to Ajay Singh for a nominal consideration of ₹2.
The transaction was coupled with a broader financial support arrangement involving the issuance of warrants and cumulative redeemable preference shares (CRPS) and an overall funding commitment of about ₹450 crore. Disputes later arose over the performance of reciprocal obligations under the SSPA, leading to arbitration.
In July 2018, a three-member arbitral tribunal directed SpiceJet and Ajay Singh to refund ₹308.21 crore to Maran and KAL Airways, along with interest at 12 per cent per annum from November 2015.
Both sides filed challenges under Section 34 of the Arbitration and Conciliation Act, 1996, while enforcement proceedings were initiated in parallel.
The enforcement proceedings saw several rounds of litigation before the Delhi High Court and the Supreme Court.
The High Court eventually directed SpiceJet to deposit ₹579 crore in interim proceedings. This was modified in appeal to permit a ₹329 crore bank guarantee and a ₹250 crore cash deposit. In 2019, ₹250 crores was released to the decree holders, and a further ₹58.21 crore was paid from the bank guarantee.
In February 2023, the Supreme Court directed encashment of the bank guarantee and ordered SpiceJet to pay ₹75 crores towards interest within three months, warning that failure to comply would render the award executable in its entirety.
In July 2023, the Court refused to grant further time and held that the award had become executable due to non-compliance.
In January 2026, the Delhi High Court dealt with applications filed by SpiceJet and Ajay Singh seeking a stay on the award. The Court noted that the Supreme Court’s directions had not been complied with.
The High Court also recorded that the judgment debtors had themselves admitted in earlier proceedings that ₹194.51 crores remained payable towards interest, of which ₹50 crore had already been deposited.
Accordingly, the Court directed the deposit of the remaining ₹144.51 crore within six weeks. SpiceJet filed the review petition challenging this order.
In February, the Supreme Court dismissed a similar plea by SpiceJet and Ajay Singh challenging this direction to deposit ₹144 crores.
