SpiceJet Warns of Collapse in Delhi High Court, Seeks Relief from ₹144.5 Crore Deposit in Maran Dispute

SpiceJet Seeks Reprieve in Delhi High Court Amid Dispute with Kalanithi Maran

SpiceJet has warned the Delhi high court that it could "collapse" if forced to immediately deposit ₹144.5 crore in its long-running dispute with Kalanithi Maran and KAL Airways Pvt. Ltd. The airline's senior advocate, Mukul Rohatgi, appeared before the bench of Justice Subramonium Prasad on Monday, citing disruptions caused by the West Asia conflict and rising aviation turbine fuel prices.

SpiceJet's operations and cash flows have been severely impacted, particularly due to restrictions on flights to the Gulf. Rohatgi argued that the airline's accounts should not be attached for non-deposit, as this would lead to a collapse of the entire system. He sought time to arrange funds, proposing that the airline furnish a one-acre commercial property in Gurugram as security instead of making an immediate cash payment.

The property, valued at ₹148 crore, is unencumbered and owned by the company. Rohatgi submitted that SpiceJet is willing to deposit the title deeds before the court. He argued that the airline has already taken steps to monetize the asset by appointing real estate advisory firm CBRE, but such transactions could take several months and should not be forced into a distress sale.

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Aviation Sector Under Stress

Rohatgi further submitted that the broader aviation sector is under stress and indicated that the government may step in with relief measures. He mentioned that the government is bringing out a package which will grant airlines loans from PSU banks on governmental sovereign security. The government will stand security for the airlines, providing them with a chance to get loans.

In this backdrop, the airline urged the court to defer the deposit deadline and grant interim protection. The immediate enforcement of the deposit could disrupt operations, affect employees and passengers, and worsen SpiceJet's financial position.

Prolonged Legal Battle

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The dispute between SpiceJet and Maran has been through multiple rounds of litigation across forums. In January, the Delhi high court directed SpiceJet and its promoter Ajay Singh to deposit ₹144.5 crore, after recording that a total of ₹194.51 crore remained due under earlier directions. After adjusting ₹50 crore already deposited, the outstanding amount stood at ₹144.51 crore.

SpiceJet challenged this order in the Supreme Court, which on February 27 refused to interfere and imposed costs on the airline for prolonging the litigation. This effectively required the airline to comply with the high court's order. Subsequently, SpiceJet moved the high court in early March seeking modification of the deposit condition. However, on 18 March, the high court rejected this plea, reiterating its direction that the amount must be deposited within four weeks.

The case remains a significant financial and legal overhang for SpiceJet, which has in recent years faced liquidity pressures, aircraft groundings due to unpaid dues, and insolvency petitions from lessors and creditors.