Delhi High Court Upholds Rs 144 Crore Deposit Order Against SpiceJet and Promoter Ajay Singh

The Delhi High Court dismissed SpiceJet and promoter Ajay Singh's pleas for reviewing the Rs 144 crore deposit order linked to a legal dispute with Kalanithi Maran. The court imposed a Rs 50,000 cost and directed immediate deposit of funds, rejecting arguments of financial distress and war-related impacts.

The Delhi High Court, on Monday, ruled against SpiceJet and its promoter Ajay Singh by dismissing their request to review a previous order that mandated a deposit of Rs 144 crore in their legal battle with media mogul Kalanithi Maran and Kal Airways. Justice Subramonium Prasad not only dismissed the pleas but also imposed a fine of Rs 50,000 on both the airline and Singh. The court's decision reiterates an earlier directive stating that SpiceJet must deposit the contested amount.

In January, the court had instructed SpiceJet and Singh to deposit Rs 144 crore against an acknowledged liability of Rs 194 crore, as determined by an arbitration award favoring Maran. The time allotted for this deposit was extended by four weeks in March. Despite attempts to challenge the ruling on grounds of financial turmoil and unforeseen global hostilities, the court was unswayed.

The crux of the dispute dates back to when Singh reacquired SpiceJet from Maran amidst financial instability in 2015. Although Singh and his airline proposed asset-based securities to fulfill the obligation, these alternatives were not accepted. The court underscored that the financial hardship argument had been previously considered and dismissed, emphasizing compliance with the Supreme Court's ruling made in July 2023.