The Delhi High Court on Tuesday dismissed SpiceJet's plea seeking to substitute a ₹400-500 crore Gurugram property as security for the ₹144.51 crore outstanding amount in its dispute with Kalanithi Maran and KAL Airways. Justice Vinod Kumar refused to accept the unencumbered one-acre land parcel in Udyog Vihar, Gurugram, stating that the airline had failed to honour its undertaking to deposit ₹50 crore within 45 days as part of its commitment to pay the outstanding amount in instalments. According to Business Standard, the court observed that it could have considered the proposal had the airline deposited the initial ₹50 crore as promised. "This court would have taken a lenient view in respect of time limit of second instalment, had petitioner complied with their own undertaking of depositing ₹50 crores with registrar general within 45 days," the court said, adding, "In such a situation, repeated extension cannot be granted."
On 13 July, SpiceJet had undertaken to deposit ₹50 crore with the court registry within 45 days and the remaining ₹94.51 crore within 90 days. According to Business Standard, the airline had relied on the Centre's emergency credit support programme for airlines amid the West Asia conflict and rising aviation turbine fuel (ATF) prices to meet its payment obligations. In August, SpiceJet sought more time from the Delhi High Court to deposit the first ₹50 crore instalment, stating it received the first tranche of emergency credit support from the government in June and used the funds for its operations, while the second tranche of around ₹349 crore was yet to materialise. The latest development comes as the cash-strapped airline grapples with mounting financial and operational challenges, including legal disputes, unpaid salary dues and disruptions linked to the West Asia conflict.
The dispute stems from a share transfer agreement executed in February 2015, when Maran and KAL Airways transferred their 58.46% stake in SpiceJet to promoter Ajay Singh during a period of severe financial stress at the airline. In July 2018, the arbitral tribunal directed SpiceJet and Singh to refund ₹308.21 crore to Maran and KAL Airways, with interest at 12% annually from November 2015. The tribunal rejected Maran's claim for ₹1,323 crore in damages over the non-issuance of warrants. In February 2023, the Supreme Court directed the encashment of the bank guarantee and ordered SpiceJet to pay ₹75 crore towards interest within three months. In January 2026, the Delhi High Court directed the remaining ₹144.51 crore to be deposited within six weeks after recording that ₹194.51 crore remained payable towards interest, of which ₹50 crore had already been deposited.
The market responded negatively to the court's rejection, with SpiceJet's shares falling 1.49% to ₹8.62 on Tuesday at 11.58 am, against the previous close of ₹8.75. As per Mint, the airline has slipped to fourth place behind Akasa Air, with its domestic market share falling to 1.2% in August 2026, compared with Akasa's 5.5%. The dispute dates back to 2015, when Maran and KAL Airways transferred their 58.46% stake in SpiceJet to promoter Ajay Singh during a period of severe financial stress at the airline. The government is maintaining close scrutiny of SpiceJet's operations and financial position amid the ongoing crisis, with the Directorate General of Civil Aviation conducting operational and financial scrutiny to prevent passenger inconvenience and ensure continuity of operations.
