SpiceJet Seeks Repayment Relief on ₹144 Crore Maran Dues Citing Financial Losses and Gulf Flight Disruptions

Financial Report: SpiceJet's Ongoing Arbitration Dispute

Summary

SpiceJet, a **₹**14,845 crore (approximately $1.8 billion) airline, has informed the Delhi high court of a severe liquidity crunch. The airline faces a **₹**144.5 crore payment obligation to Kalanithi Maran and KAL Airways Pvt. Ltd. in an ongoing arbitration dispute. SpiceJet has sought relief from the court's direction to deposit the funds within six weeks.

Background

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SpiceJet's financial position has been worsened by the cancellation of almost 40% of its flights to Gulf destinations due to the ongoing war. The airline has suffered losses, leading to a liquidity issue, according to senior counsel Amit Sibal. SpiceJet and its chairman Ajay Singh have proposed furnishing an immovable property worth **₹**148 crore as security instead of making an upfront cash deposit.

Court Proceedings

The Delhi high court is expected to continue hearing SpiceJet's plea on Wednesday. The Supreme Court had imposed a cost of **₹**1 lakh on the airline for prolonging the litigation on 27 February. SpiceJet's shares have declined by approximately 16% in 2026.

Arbitration Dispute

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The dispute dates back to January 2015, when Kalanithi Maran and KAL Airways transferred their 58.46% stake in SpiceJet to Ajay Singh. Maran and KAL Airways had alleged that the new management did not issue convertible warrants and preference shares. The matter was referred to arbitration, and a three-member tribunal directed SpiceJet to refund **₹**579 crore, along with interest, related to the warrants and preference shares. SpiceJet maintains it has already paid about **₹**730 crore to Maran and KAL Airways.

Financial Impact

The arbitration dispute remains a significant legal and financial overhang for SpiceJet, which has faced liquidity pressure, aircraft grounding due to unpaid dues, and insolvency petitions from lessors and creditors. The airline's financial performance is expected to be closely monitored in the coming weeks.