CHENNAI: The Delhi High Court has dismissed an appeal filed by KAL Airways Pvt Ltd and businessman Kalanithi Maran, seeking over ₹1,300 crore in damages from budget airline SpiceJet Ltd. This judgment marks the culmination of a prolonged legal battle involving claims related to non-issuance of warrants and preference shares during a 2015 stake transfer agreement.
The appeal was filed against earlier decisions that had rejected the same claim. An Arbitral Tribunal comprising three retired Supreme Court judges initially rejected the damages claim. Following this, a Single-Judge Bench of the Delhi High Court later upheld the tribunal’s findings.
According to a Supreme Court lawyer, who is familiar with the development, the most recent appeal, now dismissed by the High Court, was the final legal attempt by Maran and KAL Airways to claim ₹1,323 crore in compensation.
In 2010, Kalanithi Maran and KAL Airways acquired a 58.46% controlling stake in SpiceJet, up from 37.7%.
In February 2015, the stake was transferred back to Ajay Singh, SpiceJet’s original founder, under a revival agreement.
Maran and KAL Airways alleged they had paid ₹679 crore for warrants and preference shares that were never issued, triggering arbitration.
An Arbitral Tribunal had initially ruled in their favor, directing SpiceJet to refund ₹579 crore with interest. However, this award was later set aside by both the Delhi High Court and the Supreme Court in 2024, with the case sent back for reconsideration.
Despite these developments, Maran and KAL Airways proceeded to file a fresh appeal for ₹1,323 crore in damages, which was rejected once again.
Court’s Finding:
The High Court, in its May 23 ruling, upheld previous findings and affirmed that the damage claims lacked merit. The court found no substantive reason to overturn the findings of the arbitral tribunal or the earlier single-judge decision.
Following the disclosure of the verdict, SpiceJet shares rose by 2.62%, trading at ₹44.98 on the Bombay Stock Exchange (BSE) at 11:05 AM on Monday.
The Delhi High Court's verdict brings a significant closure to a legal dispute that has persisted for over a decade. With repeated rejections of their compensation claims, the decision reinforces the stance taken by earlier judicial and arbitral proceedings in favor of SpiceJet Ltd.