In a significant legal blow to the budget carrier, the Delhi High Court on March 18, 2026, granted SpiceJet a final opportunity to deposit ₹144.5 crore within four weeks. The ruling comes as part of the decade-long arbitration dispute with former promoter Kalanithi Maran and KAL Airways.
Rejection of the “Property-for-Cash” Swap
Justice Subramonium Prasad dismissed SpiceJet’s application to furnish an unencumbered immovable property—valued at approximately ₹148 crore—as security in lieu of a cash deposit.
- The Court’s Stance: The judge noted that the plea could have been rejected outright but was heard at length due to the potential impact on the airline’s 22,000 passengers and 7,000 employees.
- The “Final” Warning: “Dismissed. I am extending the time by four more weeks to deposit the money. Sell the property in four weeks,” Justice Prasad stated, emphasizing that compliance must be in liquid cash.
Liquidity Crunch vs. “Financial Distress”
During the hearing, senior counsel Amit Sibal, appearing for SpiceJet, admitted the airline is facing a “severe liquidity crunch,” though he clarified it is not in “financial distress.”
- The Gulf Conflict Factor: SpiceJet cited the ongoing Middle East conflict as a primary driver for its current cash flow issues. The airline claimed that nearly 40% of its flights to Gulf destinations have been cancelled, leading to significant revenue losses.
- Operational Strain: The airline argued that an immediate cash outflow of ₹144.5 crore would disrupt day-to-day operations and salary payments.
Legal Context: The “Endless” Litigation
The High Court’s order follows a February 27, 2026, decision by the Supreme Court, which refused to stay the deposit requirement and rebuked the airline for its “prolonged litigation” tactics.
| Metric | Details |
| Total Admitted Due | ₹194.51 Crore |
| Already Deposited | ₹50 Crore |
| Balance Outstanding | ₹144.51 Crore |
| Supreme Court Fine | ₹1 Lakh (for delay) |
Background: The 2015 Share Transfer
The dispute dates back to January 2015, when Kalanithi Maran transferred his 58.46% stake in the then-grounded SpiceJet to current Chairman Ajay Singh.
- The Claim: Maran alleged that convertible warrants and preference shares were not issued despite a ₹679 crore infusion.
- The Award: In 2018, an arbitral tribunal ordered SpiceJet to refund ₹579 crore plus interest.
- Payments to Date: SpiceJet maintains it has already paid approximately ₹730 crore (principal + interest) to Maran, while Maran’s counter-claims for ₹1,323 crore in damages were previously rejected.
Market Reaction
SpiceJet shares (NSE: SPICEJET) felt the pressure of the legal overhang, trading down by over 8% on Wednesday following the news. Investors remain wary as the airline balances this mandatory deposit against other liabilities, including dues to aircraft lessors and creditors.
