Relief for SpiceJet as Delhi HC rejects Maran’s ₹1,300 crore appeal; shares rise 4%

The division bench of the Delhi High Court, in an order dated May 23, rejected the appeal, which was already turned down by an arbitral tribunal and a single-judge bench of the high court, SpiceJet disclosed on Monday in a regulatory filing.

The damages claim, originally filed during arbitration proceedings, sought compensation exceeding ₹1,300 crore, including ₹679 crore allegedly paid for warrants and preference shares that Maran and KAL Airways said were never issued after they transferred their stake in SpiceJet back to founder Ajay Singh in 2015.

A panel of three retired Supreme Court judges had earlier examined and rejected the claims in arbitration, a decision later upheld by the high court.

"It is important to clarify that KAL Airways and Kalanithi Maran initially sought damages of more than Rs.1300 crore during the arbitration proceedings. These claims were thoroughly examined and subsequently rejected by a panel of three retired Supreme Court judges," the filing stated.

"Following this, KAL Airways and Kalanithi Maran appealed to the Single-Judge Bench of the Delhi High Court, seeking the same amount in damages, which was also rejected by the court," it added.

Following the disclosure, SpiceJet shares rose as much as 4% to ₹45.65 in early trade on the BSE. At 1 pm, the stock was trading at ₹44.88, up 2.40% from the previous close.

The decade-old legal battle stems from a 2010 deal in which Maran and KAL Airways acquired a controlling stake in SpiceJet, later relinquishing it to Singh as part of a revival package in 2015. The disagreement over financial commitments in that transaction triggered a series of arbitration and court proceedings.