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SpiceJet arbitration-award payment dispute (Supreme Court action)
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India’s Supreme Court rejected SpiceJet’s plea against payment directions tied to the Maran arbitration award and imposed ₹1 lakh costs, while upholding a January 19 order citing non-compliance with its July 2023 payment order.
Why it matters
The Supreme Court upheld its January 19 order reprimanding SpiceJet for not fulfilling obligations even after the court’s July 2023 direction to pay the arbitration award to Kalanithi Maran. In the latest order, the court declined to interfere with the earlier direction to deposit ₹144 crore and imposed ₹1 lakh costs for filing the appeal and not paying to date. The court signaled it would not allow litigation to continue without financial consequences, increasing the immediate cost of delay. SpiceJet stated it is examining the order and will comply, while separately noting its refund claims are pending before the Delhi High Court with a prima facie finding in its favor.
Implications
- • SpiceJet faces added court-imposed costs (₹1 lakh) on top of payment obligations.
- • Non-payment now carries heightened judicial intolerance, raising enforcement/penalty exposure.
- • Cash outflow pressure remains tied to the ₹380 crore award and ₹144 crore deposit direction.
- • Ongoing parallel proceedings at Delhi HC keep refund outcomes separate from SC payment orders.
Who is affected
- • SpiceJet (management, finance/legal teams, creditors)
- • Kalanithi Maran and KAL (award beneficiaries/counterparties)
- • SpiceJet shareholders and bondholders/lenders
- • Indian aviation lessors/suppliers exposed to SpiceJet payment capacity
Source
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