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Court Rejects SpiceJet's Property Deposit Bid
13 Oct
Summary
- SpiceJet's request for more time to pay ₹144 crore was denied.
- The court noted property papers were not accepted without initial deposit.
- The dispute involves an arbitration award favoring Kal Airways and Maran.
The High Court has dismissed SpiceJet's application seeking an extension to deposit ₹144 crore related to an arbitration award. The airline and its director, Singh, had requested additional time and proposed submitting property papers from Gurugram as security. However, the court observed that it might have considered the property papers had the initial ₹50 crore been deposited first, emphasizing compliance with prior directives.
The proceedings are part of a protracted legal battle over an arbitration award granted to Kal Airways and Maran. SpiceJet and Singh are challenging this award under the Arbitration and Conciliation Act, 1996, while Kal Airways and Maran are seeking its enforcement. Previously, the Supreme Court declined to interfere with the High Court's directive for the deposit.
The court had deferred proceedings on SpiceJet's challenge to the arbitration award until November 2026, conditional on the deposit being made. The recent dismissal of SpiceJet's application means the airline has not secured the requested extension, leaving the compliance status with the original deposit directions as a key development.
