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Saturday, September 23, 2023

SC dismisses application of SpiceJet and directs it to pay the entire arbitral amount to Kalanithi Maran


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New Delhi: In a major setback for SpiceJet, the Supreme Court in its order on Friday had dismissed the applications filed by it, seeking extension of time to pay 75 Crores, a part of the entire arbitral award of Rs 380 crore, to Kal Airways and Kalanithi Maran as earlier directed by it in February this year.

The bench of the Top Indian Court, while dismissing the application filed by SpiceJet, observed that the present application is nothing but a delay tactic of SpiceJet Ltd to not pay money even when there are Court orders directing the same.

The Apex Court slammed the SpiceJet for indulging in “luxury litigation”, and observed that the airline is a well-heeled party, visible form the battery of lawyers.

The Supreme Court in its order today also refused to grant any further extension to SpiceJet and reprimanded the airline for failing to pay Rs 75 crore to Maran, as per earlier order.

“If orders are not complied with, consequences must follow, that’s the only way to ensure commercial morality, a bench of the Top Court, headed by the Chief Justice of India (CJI) Dr Dhananjaya Yeshwant Chandrachud and also comprising Justice P S Narasimha said, in their order today.

The Supreme Court had also made it clear in its order today that in the event of failure by SpiceJet to pay, the entire award would become executable in entirety in Favour of Kal Airways and Kalanithi Maran.

The applications were moved in the Supreme Court by SpiceJet seeking extension of time for 2 more months, as the 3 months’ time period had expired on May 13, 2023, and SpiceJet failed in honoring the Apex Court’s Order.

Maran is claiming outstanding arbitral award dues of Rs 380 crore.

The Apex Court observed that the SpiceJet is not obeying with the orders of the Courts and the arguments taken in the application seeking extension of time are unreasonable with the sole purpose to delay the execution of award and avoid payment of the arbitral amount despite the orders of the Apex Court.


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