SpiceJet has informed the Delhi High Court that an immediate deposit of Rs 144.5 crore could trigger the airline's collapse. The deposit, as reported by Economic Times, is in regard to its long-running arbitration dispute with former promoter Kalanithi Maran and KAL Airways.
Senior lawyer Mukul Rohatgi, appearing for SpiceJet, told the court that the airline is facing acute cash pressure, with nearly 40% of its Gulf-bound flights cancelled due to the ongoing West Asia conflict. Hence, attaching bank accounts at this stage could halt even basic operations. The Delhi High Court has moved the next hearing to April 15, 2026, where it will decide whether to grant further relief or enforce the deposit order, which has already survived two Supreme Court rejections and multiple High Court modification attempts since January 2026.
The case goes back to January 2015, when Kalanithi Maran and KAL Airways sold their joint stake of 58.46% in SpiceJet to current Chairman Ajay Singh. This was a time when the airline was on the verge of closure. As per the reports of Daily Hunt, during the transaction, Maran and KAL Airways injected about Rs 679 crore in the airline by way of convertible warrants and preference shares, which Maran subsequently claimed were never issued by the new management.
The case was referred to an arbitral tribunal of three persons. The tribunal ordered SpiceJet to repay Rs 308.21 crore plus 12 per cent annual interest on the money since November 2015. However, it denied Maran his greater damages claim of Rs 1,323 crore in July 2018. What ensued was a series of enforcement actions, appeals, encashment of bank guarantees, and contempt notices in the Delhi High Court and the Supreme Court.
SpiceJet has continued to state that it has already remitted about Rs 730 crore to Maran and KAL Airways, which includes the principal amount of Rs 579 crore and an additional amount of approximately Rs 150 crore as interest. The High Court noted that SpiceJet had previously admitted to a total liability of 194.51 crore, out of which 50 crore is deposited, and 144.51 crore is yet to be paid.
The January 2026 High Court order directed full deposit within six weeks. SpiceJet missed that deadline and approached the Supreme Court, which refused to intervene in February 2026 and imposed a Rs 1 lakh cost for prolonging proceedings. On March 18, 2026, the court declined the unencumbered property in Gurugram worth Rs 148 crore in place of cash and ordered the airline to sell the property and deliver the cash within four weeks.
Justice Subramonium Prasad of the Delhi High Court drew a firm line on March 18:
"Dismissed. I am extending the time by four more weeks to deposit the money. Sell the property in four weeks."— SAID BY Justice Subramonium Prasad of the Delhi High Court.
The judge noted the matter was heard at length solely because of the impact on SpiceJet's 22,000 passengers and 7,000 employees. He made it clear that judicial orders cannot be postponed indefinitely, regardless of operational circumstances.
The legal obligation of SpiceJet is further straining an already disturbed position of functioning. The West Asia conflict has directly affected the airline revenue base, with close to 40 per cent of its flights being on the Gulf routes, and cancellations are exerting financial strain at a time when the airline could not have done with the added pressure. SpiceJet's share price stood at Rs 12.11 on March 20, 2026, an 11-year low per Angel One data.
The counter-claim of Rs 449 crore against Maran and KAL Airways made by the airline is pending at the Delhi High Court, where a prima facie finding has already been made in favour of SpiceJet as per the own submissions of the airline. If the counter-claim succeeds, it would net out much of the current liability. However, that process will take time, and the airline's liquidity position may not easily accommodate it.
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