Delhi HC Sets Aside SpiceJet Award
AVIATION & AIRPORTS

Delhi HC Sets Aside SpiceJet Award

The Delhi High Court has overturned a previous order that upheld an arbitral award in favour of Kalanithi Maran and Kal Airways against SpiceJet. The dispute originates from January 2015, when Maran transferred his 58.46% stake in SpiceJet to Ajay Singh for Rs 2, taking on a Rs 1,500 crore debt liability.

The arbitration tribunal had ruled in July 2018 that Maran and Kal Airways were owed Rs 579 crore plus interest from SpiceJet for non-issuance of warrants and preference shares. SpiceJet challenged this decision, leading to the High Court's recent ruling. The court found that the tribunal's award did not meet the necessary legal standards to be upheld. This legal battle highlights the complexities of corporate transactions and the stringent scrutiny of arbitral awards in Indian courts.

Maran, the promoter of Sun Network, had initially approached the Delhi High Court in 2017, alleging that SpiceJet failed to honour the terms of the agreement made during the stake transfer. The agreement stipulated that SpiceJet would issue convertible warrants and preference shares worth Rs 679 crore, which Maran claimed were never issued.

In response, SpiceJet contested the arbitral award, arguing that it was not illegal or against public policy. The recent decision by the Delhi High Court to set aside the award indicates that the evidence presented by Maran and Kal Airways was insufficient to justify the award.

This case underscores the importance of thorough documentation and adherence to agreements in corporate transactions. It also illustrates the judiciary's role in ensuring that arbitral awards comply with legal and policy standards before enforcement.

The Delhi High Court has overturned a previous order that upheld an arbitral award in favour of Kalanithi Maran and Kal Airways against SpiceJet. The dispute originates from January 2015, when Maran transferred his 58.46% stake in SpiceJet to Ajay Singh for Rs 2, taking on a Rs 1,500 crore debt liability. The arbitration tribunal had ruled in July 2018 that Maran and Kal Airways were owed Rs 579 crore plus interest from SpiceJet for non-issuance of warrants and preference shares. SpiceJet challenged this decision, leading to the High Court's recent ruling. The court found that the tribunal's award did not meet the necessary legal standards to be upheld. This legal battle highlights the complexities of corporate transactions and the stringent scrutiny of arbitral awards in Indian courts. Maran, the promoter of Sun Network, had initially approached the Delhi High Court in 2017, alleging that SpiceJet failed to honour the terms of the agreement made during the stake transfer. The agreement stipulated that SpiceJet would issue convertible warrants and preference shares worth Rs 679 crore, which Maran claimed were never issued. In response, SpiceJet contested the arbitral award, arguing that it was not illegal or against public policy. The recent decision by the Delhi High Court to set aside the award indicates that the evidence presented by Maran and Kal Airways was insufficient to justify the award. This case underscores the importance of thorough documentation and adherence to agreements in corporate transactions. It also illustrates the judiciary's role in ensuring that arbitral awards comply with legal and policy standards before enforcement.

Next Story
Infrastructure Transport

Metro Line 2B Phase 1 to Boost Realty in Mumbai’s Eastern Suburbs

Mumbai’s real estate sector is set for a major boost as Phase 1 of Metro Line 2B, between Mandale and Diamond Garden, nears completion. The Mumbai Metropolitan Region Development Authority (MMRDA) has confirmed that mandatory rectifications are done, and inspections by the Commissioner of Metro Railway Safety (CMRS) have been carried out. The 5.39-km stretch with five stations forms part of the larger DN Nagar–Mandale corridor, designed to ease congestion and improve east–west connectivity. Passenger operations are expected by December 2025, with the full line slated for 2027. ..

Next Story
Resources

WattPower wins Best Inverter award at Global Solar Expo 2025

WattPower, a leading renewable energy solutions provider, has won the award for “Best Inverter in the Utility Segment” at the Global Solar Expo 2025. The recognition underscores the company’s commitment to delivering reliable, high-performance and future-ready solar solutions for large-scale projects. At the forefront of utility-scale solar, WattPower manufactures advanced string inverters that directly feed power into the Indian grid. With robust technology, high-quality components and comprehensive product lifecycle support, its solutions stand among the most sophisticated in the ..

Next Story
Real Estate

Awfis delivers 67,000 sq. ft. innovation hub for eBay in Bengaluru

Awfis Space Solutions, India’s largest flexible workspace provider and the first publicly listed workspace solutions platform, has partnered with eBay to establish a 67,000 sq. ft. innovation hub at Embassy Tech Village, Bengaluru. The mandate covers design, build and management of the new office, which will act as a strategic hub supporting diverse functions and accelerating eBay’s AI-first commerce strategy. The centre will focus on artificial intelligence, engineering, product development and applied research, strengthening eBay’s growth in India. Embassy Tech Village, North Beng..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?