Daijiworld Media Network – Chennai
Chennai, May 26: In a significant legal victory for budget airline SpiceJet Ltd, the Delhi High Court has dismissed a long-pending compensation claim of over Rs 1,300 crore filed by KAL Airways Pvt Ltd and its promoter Kalanithi Maran, bringing to an end a decade-long corporate and legal tussle.
The high-stakes appeal stemmed from alleged breaches during a 2015 stake transfer deal, wherein KAL Airways and Maran claimed damages over the non-issuance of warrants and preference shares promised as part of the transaction.
Despite earlier setbacks, Maran and KAL Airways sought Rs 1,323 crore as compensation, arguing that they had paid Rs 679 crore for shares and warrants which were never issued. However, the Delhi HC’s May 23 ruling found no merit in their claims and reaffirmed the findings of both a three-member Arbitral Tribunal (comprising retired Supreme Court judges) and a single-judge bench of the same court that had earlier rejected the damages plea.
“This ruling is a comprehensive closure,” said a senior Supreme Court lawyer familiar with the case. “All forums have now consistently ruled against Maran and KAL Airways, solidifying SpiceJet’s legal standing.”
The case traces back to 2010, when Kalanithi Maran and KAL Airways acquired a 58.46% stake in SpiceJet. In February 2015, the stake was handed back to Ajay Singh, the airline’s original founder, under a revival agreement. The dispute over share issuance triggered arbitration, where the tribunal initially ordered a partial refund of Rs 579 crore. However, this too was eventually set aside by both the Delhi High Court and the Supreme Court in 2024.
In reaction to the latest ruling, SpiceJet shares rose by 2.62%, reaching Rs 44.98 on the Bombay Stock Exchange by mid-morning Monday, signaling investor confidence.
Legal experts see this verdict as a crucial moment for corporate arbitration integrity. With no further legal recourse in sight for Maran and KAL Airways, this chapter in the SpiceJet saga appears firmly closed—for now.