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SpiceJet vs Kalanithi Maran: SC upholds HC order, sends dispute back to single judge

Delhi High Court in May ruled in favour of SpiceJet, overturning a previous single-bench order that had directed SpiceJet to pay interest of up to Rs. 300 crore to Maran in a dispute over an arbitral award.

Suchitra Kalyan Mohanty

NEW DELHI: In a major relief to SpiceJet, the Supreme Court on Friday rejected an appeal filed by Kalanithi Maran, the promoter of Kal Airways, who had challenged a Delhi High Court division bench ruling in favor of the airline.

The apex court's three-judge bench, led by Chief Justice D.Y. Chandrachud, upheld the Delhi HC division bench's decision.

The Supreme Court remanded the case back to the High Court and instructed the Chief Justice of the Delhi High Court to constitute a new bench for further consideration.

The Supreme Court, however, after reviewing the earlier single-bench order from the High Court, described it as “atrocious" and remarked that the judge "had not applied his mind at all."

On May 17, 2024, the Division Bench of the Delhi High Court ruled in favor of SpiceJet and its Chairman and Managing Director, Ajay Singh, overturning a previous single-bench order that had directed SpiceJet to pay interest of up to Rs. 300 crore to Maran in a dispute over an arbitral award.

"The Supreme Court’s dismissal of Maran's appeal vindicates SpiceJet's position in this protracted legal battle," said a release from SpiceJet.

Following the apex court's order, SpiceJet Ltd welcomed the decision, noting in a release that the dismissal of the appeal by Maran and Kal Airways challenges the Delhi High Court division bench ruling in favor of the airline.

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