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SpiceJet has informed the Delhi High Court that it may face collapse if it has to deposit Rs. 144.5 crore immediately in its ongoing case with Kalanithi Maran and KAL Airways. The airline says its financial condition is already under heavy pressure.
The airline filed a review petition on 7 April, asking the court to change its previous order. The court asked SpiceJet to deposit the money by 14 April. The airline said this deadline is extremely difficult to meet.
Senior lawyer Mukul Rohatgi appeared for SpiceJet in court. He said the airline is facing serious cash problems. He also explained that external issues have worsened the situation.
He pointed to higher fuel prices and flight restrictions to Gulf countries. He noted that these problems have reduced income and affected daily operations. He further added that the airline is already under stress, and forcing payment now could shut down the business.
Rohatgi said even basic operations could stop if bank accounts get attached. He asked for more time to arrange funds. The Delhi High Court heard the arguments and moved the next hearing to 15 April. The court will decide whether to give any relief or keep the deposit order.
This case is part of a long legal fight between SpiceJet and Kalanithi Maran. The dispute started in 2015 when Maran sold his stake in the airline to Ajay Singh during a financial crisis.
Later, an arbitration tribunal ordered SpiceJet to pay money linked to shares and warrants. This led to several court cases between the two sides.
SpiceJet says it has already paid more than Rs. 730 crore in total. This includes previous payments and interest. However, both sides still disagree on the remaining amount.
The court ordered SpiceJet to deposit Rs. 144.5 crore after adjustments. The Supreme Court also refused to stop this order earlier this year.
SpiceJet also requested the court to accept a commercial property in Gurugram instead of cash. The airline explained that it owns the property and can use it as security. It also said selling it quickly would cause heavy losses.
The airline said it is already working with advisors to sell the asset. However, it said a forced sale will reduce its value by almost half.
The airline requested possible government support for the aviation sector. It said new policies may help airlines get loans with government backing.
The airline said the whole aviation sector is under stress due to rising costs and fuel price changes. It added that many airlines face similar pressure.
The next hearing will decide SpiceJet’s request for relief. The outcome will affect the airline’s short-term financial situation.
The case continues to remain an important financial challenge for SpiceJet. It also adds pressure on its recovery plans and business stability.
Industry watchers say the decision may also impact confidence in the airline sector. The result may guide future handling of similar financial disputes.
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