SpiceJet shares surge 6% as Supreme Court rejects Maran, KAL Airways' plea seeking ₹1,323 crore damages
A Supreme Court bench comprising Justices Pamidighantam Sri Narasimha and Atul S Chandurkar dismissed the special leave petitions filed by KAL Airways and its promoter Kalanithi Maran, effectively closing the door on their efforts to seek damages from SpiceJet over a failed share transfer deal. "Both the special leave petitions are dismissed," the court stated, marking a definitive end to the appeal process.
Earlier, the Delhi High Court had declined to condone a 55-day delay in filing and a 226-day delay in re-filing the appeal, citing what it called a 'calculated gamble' by the appellants and accusing them of deliberately concealing facts from the court and SpiceJet. The concept of condonation of delay is governed by the Limitation Act, which typically allows 90 days to file an appeal; any delay beyond that requires a credible explanation—something the courts said was lacking in this case.
The dispute originated in 2015 when Maran and KAL Airways transferred their 58.46 percent controlling stake in SpiceJet to its original founder Ajay Singh. The transfer came at a time when the airline was facing a severe financial crisis, prompting Singh to take over operations and liabilities. Maran and KAL later claimed they had paid for convertible warrants and preference shares worth over ₹ 1,300 crore, which they alleged were never issued.
The case went into arbitration, where an initial ruling favoured KAL Airways. However, the Delhi High Court subsequently set aside the arbitral award, a decision that was upheld by the Supreme Court in 2024. Following this, KAL Airways and Maran attempted to revive their damages claim through the High Court and later the apex court—both of which rejected their appeals.
According to legal news platform Bar and Bench, the Supreme Court found the appellants' conduct to be lacking in good faith and part of a deliberate litigation strategy, rather than a result of negligence or delay.
SpiceJet had earlier welcomed the Delhi High Court's decision, stating that a panel of three retired Supreme Court judges had already examined and rejected the damages claim. The airline reiterated that Maran's repeated attempts to revive the case amounted to judicial overreach.
The ruling comes at a time when SpiceJet is grappling with financial stress and a shrinking market share amid multiple operational challenges. As of March 2025, the airline reported a net worth of ₹ 683 crore, supported by a ₹ 500 crore equity infusion from its promoter group, which included ₹ 294 crore added in the March quarter. The airline has also entered strategic partnerships with StandardAero and Carlyle Aviation to accelerate engine overhauls and fleet expansion.
As part of its summer schedule, SpiceJet launched 24 new domestic flights and added new destinations such as Dehradun, Porbandar, and Tuticorin. By the end of 2025, the airline aims to operate a fleet of 52 aircraft, most of which will be leased on wet or dry terms.
Following the Supreme Court verdict, SpiceJet shares rose as much as 6 percent to an intra-day high of ₹ 40.42. However, the stock remains over 49 percent below its 52-week high of ₹ 79.90, touched in September 2024. It recently hit a 52-week low of ₹ 37.87 earlier this month.
Over the past year, the stock has declined by 30 percent. The share price has remained under pressure in 2025, falling 12 percent in June and 6.4 percent in May. While April saw a brief recovery with an 8.4 percent gain, the preceding months were also negative—down 11.8 percent in January, 6 percent in February, and 3.4 percent in March. July so far has seen a marginal decline of 0.3 percent.
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