The Delhi High Court has recorded SpiceJet's and Managing Director Ajay Singh's undertaking to pay ₹140 crore to KAL Airways and Kalanithi Maran in execution proceedings arising from an arbitral award. During the hearing before Justice Subramonium Prasad, counsel for SpiceJet drew the Court's attention to an additional affidavit filed on July 10, stating that the airline and its Managing Director undertake to deposit ₹50 crore with the registry within 45 days, followed by ₹90 crore within the next 90 days. The High Court accepted this undertaking and directed SpiceJet and Ajay Singh to deposit the first tranche of ₹50 crore within 45 days to demonstrate their bona fides in complying with the Court's earlier directions. The matter has been listed for September 21, 2026 to monitor compliance with the payment schedule.
Senior advocate Mukul Rohatgi, appearing virtually for SpiceJet and Ajay Singh, informed the court that the airline had received partial financial assistance under the Centre's emergency credit programme introduced to support airlines affected by operational disruptions arising from the recent West Asia conflict. As reported by Business Standard, he submitted that while part of the assistance had already been received, the remaining support was expected shortly, enabling the airline to complete the balance payment within the timeline proposed before the court. The airline has now committed to paying the first instalment on this basis, citing the central government assistance amid the ongoing crisis in West Asia.
The Delhi High Court has now deferred hearing of SpiceJet's petition under Section 34 of the Arbitration and Conciliation Act, 1996 challenging the arbitral award until November 2026. The Court indicated that the challenge would be taken up only after compliance with the deposit directions. The matter has been listed for September 21, 2026 to monitor compliance with the deposit schedule. This development follows the Supreme Court's May 19, 2026 order which declined to interfere with the Delhi High Court's earlier direction requiring SpiceJet and Ajay Singh to deposit the amount awarded in arbitration. The request for additional time to make the payment came after the Supreme Court's recent order.
The dispute between SpiceJet and Maran dates back to 2015, when KAL Airways transferred its 58.46% stake in the airline to promoter Ajay Singh during a period of severe financial stress. According to Business Standard, Maran infused around ₹679 crore into the airline through convertible warrants and preference shares, but later alleged that the new management failed to issue those securities, triggering arbitration proceedings. In May 2024, a division bench set aside an earlier order upholding a ₹579 crore refund award against Singh and SpiceJet, sending the matter back for fresh consideration. The case has moved through several rounds this year, with the court initially ordering a deposit of ₹144 crore within six weeks against an admitted liability of ₹194 crore from the arbitral award.
Earlier this year, SpiceJet failed to comply with the deposit direction and subsequently approached both the Delhi High Court and the Supreme Court through multiple petitions seeking relief. According to Business Standard, the airline argued that an immediate cash deposit would worsen its liquidity position and instead sought permission to furnish a commercial property in Gurugram as security. While the Delhi High Court rejected those pleas, the Supreme Court later permitted SpiceJet to approach the high court again for reconsideration in light of subsequent developments. Senior Advocate Jayant Mehta, with the law firm Karanjawala & Co., represented KAL Airways Pvt Ltd and Kalanithi Maran during the latest proceedings.
