The Supreme Court has dismissed a ₹1,300 crore damages claim filed by former SpiceJet promoters Kalanithi Maran and KAL Airways against the airline.
Spicejet “On Wednesday (July 23), the Supreme Court rejected a ₹1,300 crore damages claim filed by businessman Kalanithi Maran and KAL Airways against SpiceJet.”
A Supreme Court bench comprising Justice P.S. Narasimha and Justice A.S. Chandurkar on Wednesday upheld the Delhi High Court’s order, dismissing the ₹1,300 crore damages claim filed by former SpiceJet promoter Kalanithi Maran and KAL Airways. Delivering the verdict, Justice Chandurkar stated, “Both the special leave petitions are dismissed.”
Earlier in May, a division bench of the Delhi High Court had rejected the appeal by Kalanithi Maran and KAL Airways, in which they sought damages exceeding ₹1,300 crore, along with additional claims. According to SpiceJet, the claimants had originally demanded this compensation during arbitration proceedings.
The dispute dates back to 2015, when Kalanithi Maran and his firm KAL Airways sold their entire 58.46% stake in Jet to co-founder Ajay Singh for a nominal sum of ₹2, as part of a revival plan for the cash-strapped airline. As part of the agreement, they also infused ₹679 crore into Jet for the issuance of convertible warrants and preference shares.
In 2017, Maran and KAL Airways sued Jet and Singh, alleging breach of the agreement for failing to issue the promised warrants and shares. The case was referred to arbitration, and in 2018, a three-member panel of retired Supreme Court judges rejected their ₹1,323 crore damages claim. However, the tribunal ordered a refund of ₹579.08 crore, with 12% annual interest on the warrants and 18% interest on the awarded amount for delayed payments. Their claim for the restoration of the 58.46% stake was also dismissed.
KAL Airways, Kalanithi Maran vs SpiceJet
The dispute between Kalanithi Maran and Jet stretches back over a decade. In 2010, Maran and his firm KAL Airways acquired a controlling stake in the airline, raising their shareholding from 37.7% to 58.46%. However, in February 2015, they transferred their entire stake back to SpiceJet’s original founder, Ajay Singh, under a revival agreement. Maran and KAL Airways later alleged that despite paying ₹679 crore for convertible warrants and preference shares, the securities were never issued—leading to a prolonged legal battle.
