Indian domestic budget airline SpiceJet has been ordered by the Delhi High Court to pay Rs 380 crore, an interest liability, to Kalanithi Maran, the former promoter of the airline and the founder of media giant Sun Group. The order was passed after SpiceJet failed to pay Rs 75 crore as per an earlier Supreme Court order dated February 13.

In an earlier Supreme Court order dated February 13, SpiceJet was ordered to pay Rs 75 crore to Maran within three months. Upon the failure to do so, the new order has been passed. The court has also directed the aviation firm to submit an affidavit of its assets within four weeks.

The conflict between SpiceJet and Kalanithi began in January 2015 when KAL Airways, an entity owned by Kalanithi Maran, made a low-ball offer to buy Ajay Singh, the airline’s primary stakeholder and chairman and managing director, a 58.46% stake in SpiceJet for just Rs 2 per share. During this transaction, the stock was priced at Rs 16.30 per share.

Maran filed a complaint with the Delhi High Court in March of the following year, stating that Singh had broken the terms of the agreement by failing to grant him enough share warrants and preference shares despite receiving an investment of Rs 679 crore.

The high court then ordered SpiceJet to deposit Rs 579 crore and asked Maran and Singh to establish an arbitration tribunal. SpiceJet appealed the HC verdict to the Supreme Court in July 2017, but the high court affirmed the decision.

An arbitration panel rejected Maran and KAL Airways’ claim for Rs 1,300 crore in damages against SpiceJet. Delhi HC directed SpiceJet to deposit Rs 243 crore as interest payment in September 2020. The SC blocked the request. Maran petitioned the Supreme Court in February 2022 to end the stay on a Delhi High Court judgement.

The airline was required by the Supreme Court’s order from February to use a bank guarantee worth Rs 270 crore to pay Kalanithi Maran’s portion of the Rs 572 crore arbitral award. Additionally, it had ordered SpiceJet to pay Marans’ claims of Rs 362 crore in unpaid interest on Rs 75 crore.

SpiceJet informed the court that it had paid Rs 308 crore in cash towards the outstanding amount of Rs 579 crore and had provided a bank guarantee of Rs 270 crore to cover the remaining amount when the order was made.

The Delhi High Court has been permitted by the court to hear Spicejet’s argument for a lower interest.