Delhi HC rejects SpiceJet’s plea to submit Gurugram property instead of ₹144 cr in Kalanithi Maran and KAL Airways

The Delhi High Court on Tuesday rejected SpiceJet Ltd’s plea to submit a property title deed instead of depositing ₹144 crore in a share transfer dispute with the airline’s former promoters, Kalanithi Maran and KAL Airways.

The court case relates to a share transfer between Ajay Singh and Maran. In February 2015, Maran and his company, KAL Airways, transferred their 58.46 per cent stake in the airline to Singh. In 2017, Maran and KAL Airways approached the high court seeking the transfer of 180 million warrants redeemable as equity shares. Earlier, on July 29, 2016, the court had directed the parties to resolve the dispute through arbitration.

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On July 20, 2018, the arbitral tribunal rejected Maran’s claim for ₹1,323 crore in damages for not issuing warrants to him and KAL Airways, but awarded a refund of ₹579 crore with interest. Maran then moved the high court against the arbitral award, which had also rejected his claim for damages and his bid to regain control of the airline. The court directed SpiceJet and Singh to deposit ₹579 crore, permitting a bank guarantee of ₹329 crore and a cash deposit of ₹250 crore.

Instead of making the deposit, the airline reiterated its proposal to offer an unencumbered one-acre land parcel in Udyog Vihar, Gurugram, valued at ₹400-500 crore, as security. The high court, however, rejected the plea to place a property title deed in lieu of the deposit.

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Separately, the budget carrier is also facing fresh operational pressure, with around 40 pilots flying its Q400 aircraft refusing to operate until pending salary dues are cleared, according to PTI sources.

The pilots’ stand has received the backing of the Airline Pilots’ Association of India, or ALPA India, which said it stood in solidarity with them. The latest developments come at a time when SpiceJet has been dealing with prolonged financial and operational challenges, while the Directorate General of Civil Aviation has been closely monitoring the airline.