SpiceJet Shares Rally As SC Ends Rs 1,323 Cr Legal Battle With KAL Airways
SpiceJet shares surged 7% after the Supreme Court dismissed KAL Airways' Rs 1,323 crore damage plea. Trading volume spiked with over 56.59 million shares exchanged.
SpiceJet Share Price: The low-cost carrier SpiceJet's shares rallied nearly 7 per cent intraday on Wednesday, July 23, following the Supreme Court's dismissal of the Rs 1,323 crore damage plea by Maran and KAL Airways from the airline.
The trading volume of SpiceJet's shares spiked with over 56.59 million shares exchanged so far. At 12:30 pm, shares were trading at Rs 40.69 with a gain of 6.80 per cent against the day's opening at Rs 38.39 apiece and the previous day close at Rs 38.10 apiece.
The bench of SC comprising Justices Pamidighantam Sri Narasimha and Atul S Chandurkar dismissed the special leave petitions filed by KAL Airways and its promoter Kalanithi Maran, marking the end to the appeal process of the parties to seek damages from the low-cost carrier over a failed share transfer deal. The court's order closes all doors for KAL Airways to seek the damage compensation on the alleged contractual breach.
The decade old dispute goes back to share transfer deal in 2015 where the promoter of KAL Airways, Kalanithi Maran, sold his entire stake in SpiceJet to its founder Ajay Singh. But KAL Airways has sought additional damages and payments from the deal. This has become the root cause of the decade-long dispute.
June 2010: Kalanithi Maran, through Sun Group, acquires a 37.7% stake in SpiceJet, marking his entry as a major shareholder.
January 2015: Maran sells his entire stake in SpiceJet to co-founder Ajay Singh for a reported Rs 2 crore, along with the transfer of Rs 1,500 crore in liabilities. This transaction forms the basis of the subsequent dispute, as KAL Airways claims additional payments and damages.
2017-2018: The dispute escalates as KAL Airways and Maran file a case against SpiceJet, alleging that SpiceJet failed to honor terms of the 2015 share transfer agreement, including the issuance of warrants and preference shares. They seek damages of over ₹1,300 crore for alleged breaches.
2020-2021: Legal proceedings continue in the Delhi High Court. KAL Airways and Maran claim SpiceJet defaulted on payments related to the share transfer, while SpiceJet contests the claims, asserting no dues were pending. The case revolves around financial obligations and contractual breaches.
2023: The Delhi High Court hears arguments in the case. KAL Airways and Maran continue to press for Rs 1,300 crore in damages, alleging non-fulfillment of contractual obligations by SpiceJet. SpiceJet counters that the claims are baseless and that it complied with the agreement.
July 23, 2025: The Supreme Court of India dismisses KAL Airways' and Kalanithi Maran's appeal seeking Rs 1,300 crore in damages from SpiceJet. The court upholds the Delhi High Court's earlier ruling, providing significant relief to SpiceJet and effectively resolving the major financial claim in the dispute.
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