SpiceJet seeks relief on ₹144 crore Maran payment, cites financial losses, Gulf flight cancellations
Budget airline SpiceJet told the Delhi high court on Tuesday that it is facing a severe liquidity crunch and cannot deposit funds ₹Kalanithi Maran and KAL Airways Pvt. 144.5 crore as stated in the ongoing arbitration dispute with. Ltd.
Almost 40% of SpiceJet’s flights to Gulf destinations have been canceled due to the ongoing war, worsening its financial situation, the carrier said in a presentation before the bench of Justice Subramonium Prasad.
SpiceJet made a new plea to get help in terms of deposits ₹144 crore within six weeks to meet payment obligations to Maran and KAL Airways.
Even before the war in Iran, Senior lawyer Amit Sibal stated that SpiceJet was facing liquidity shortage due to incurring losses.
“We are not in financial distress, I’m not saying that, but we have a liquidity problem,” Sibal said.
SpiceJet and its chairman Ajay Singh also requested that the court’s order be changed and offered to provide immovable property worth around 100,000 euros. ₹148 crore as security instead of making cash deposit up front.
“We have an unencumbered security and we have done the valuation as per that of a registered valuer. I have the original title deeds with me. This was originally encumbered but was released to me and therefore I have the original deeds and can deposit them with the registry,” Sibal told the court.
The court is expected to continue hearing SpiceJet’s defense on Wednesday.
The fresh application was filed on March 6 after the Supreme Court refused to stay the Delhi high court’s February 27 order directing the airline and its promoter Ajay Singh to deposit money. ₹144.51 crore. The high court set a cost ₹1 lakh to the airline for prolonging the case.
Acceptance of dues
The Supreme Court’s rejection meant that SpiceJet had to comply with the high court’s January 19 order within six weeks; This led the airline to make a new plea to provide property rather than cash.
In its decision dated January 19, the high court noted that SpiceJet had confessed. ₹194.51 crore was due and payable as per the Supreme Court’s earlier directions. After setting ₹50 crore has already been deposited, ₹144.51 crore remained outstanding.
The Supreme Court had issued clear instructions requiring compliance with timelines in February and July 2023, and these instructions were not fully complied with, the court said.
Email inquiries were sent to: Seeking confirmation and response regarding the submissions made before the Delhi high court, SpiceJet remained unresponsive till the time of publication.
SpiceJet shares are down nearly 16% so far in 2026.
Dispute, Kalanithi Maran and KAL Airways transferred its 58.46% stake in SpiceJet to Ajay Singh after the airline faced severe financial distress. As part of the agreement, Maran and KAL Airways ₹$679 billion was transferred to the airline for the issuance of convertible warrants and preferred shares.
Maran then demanded a refund, claiming that these instruments were not issued by the new management. The matter was referred to arbitration before a three-member bench comprising retired Supreme Court judges.
In July 2018, the court rejected Maran’s request. ₹1,323 crore compensation sought but SpiceJet ordered to refund ₹579 crore along with interest on warrants and preference shares.
Both parties challenged aspects of the judgment before the Delhi high court, leading to a protracted phase of enforcement proceedings, appeals and interim orders before the high court and the Supreme Court.
However, SpiceJet maintains that it has already paid approx. ₹730 crore to Maran and KAL Airlines including principal amount ₹579 crore and approx. ₹150 crore towards interest.
The dispute remains a significant legal and financial burden for the airline, which has faced liquidity pressures, groundings of planes due to unpaid dues and bankruptcy petitions from lessors and creditors in recent years.
