SC dismisses Kalanithi Maran and KAL Airways’ plea for Rs 1,323 crore in damages from SpiceJet
The dispute began in 2015 when Maran and KAL Airways transferred their 58.24 percent stake they held in SpiceJet to the airline's founder-promoter Ajay Singh for a nominal sum of Rs 2.
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On July 23, the Supreme Court dismissed a plea filed by Kalanithi Maran and KAL Airways challenging the Delhi High Court’s rejection of their claim seeking Rs 1,323 crore in damages from SpiceJet.
Earlier this month, Maran, former owner of SpiceJet and KAL Airways, approached the Supreme Court challenging the Delhi High Court’s dismissal of their plea seeking Rs 1,323 crore in damages from SpiceJet. Prior to this, an arbitral tribunal had also rejected KAL Airways’ claim for the same amount against the airline.
In May, the Delhi High Court had dismissed Maran’s appeal, accusing him of engaging in a 'calculated gamble' and citing wilful concealment of facts. The dispute began in 2015 when Maran and KAL Airways transferred their 58.24 percent stake they held in SpiceJet to the airline's founder-promoter Ajay Singh for a nominal sum of Rs 2.
As per the agreement, in exchange for the ₹679 crore invested by Maran and KAL Airways in SpiceJet, they were to be issued redeemable warrants and preference shares. However, in 2017, Maran approached the Delhi High Court, alleging that neither the convertible warrants and preference shares were issued, nor was the invested amount returned.
In 2018, an arbitration panel rejected Maran’s and KAL Airways’ claim for ₹1,323 crore in damages over the non-issuance of convertible warrants by SpiceJet. However, the panel directed SpiceJet to refund ₹579 crore along with an applicable interest component. In 2024, SpiceJet once again refuted the claims made by Maran and KAL Airways, who continued to seek damages amounting to ₹1,323 crore.
