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

CPCL crosses $10 million revenue milestone

Chaitanya Projects Consultancy (CPCL), a leading infrastructure and engineering consultancy, has surpassed $10 million in annual revenue for FY 2024–25, marking a five-year compound annual growth rate of 28.2 per cent—well above the industry average. Established in 2004, CPCL has delivered over 300 projects across highways, bridges, urban infrastructure, water, transport, and environmental sectors. Its achievements include over 600 km of six-lane highways, 2,000 km of national highways, and 100 major bridges. “Our goal has always been to improve India’s infrastructure,” sai..

Next Story
Resources

KPIL secures new orders worth Rs 37.89 billion

Kalpataru Projects International Ltd (KPIL), a major EPC player in power transmission and civil infrastructure, has secured new orders worth approximately Rs 37.89 billion along with its international subsidiaries. The orders include a significant contract in the Buildings and Factories (B&F) segment in India, marking KPIL’s largest B&F order to date. The project involves the development of over 12 million sq ft of residential space with supporting infrastructure, awarded on a design-build basis. Additionally, the company has won new transmission and distribution (T&D) order..

Next Story
Real Estate

Apartment loading rises to 40 per cent in top cities

Driven by rising demand for premium amenities, the average apartment loading across India’s top seven cities has reached 40 per cent in Q1 2025, up from 31 per cent in 2019, according to ANAROCK Research. The loading factor, or the area paid for beyond the usable carpet area, covers common spaces such as lobbies, staircases, and clubhouses. Mumbai Metropolitan Region (MMR) continues to lead with the highest loading at 43 per cent. Bengaluru saw the sharpest jump, from 30 per cent in 2019 to 41 per cent in Q1 2025. Chennai recorded the lowest average loading at 36 per cent. “Sixty..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?