Delhi HC sets aside order upholding arbitral award in favour of Kalanithi Maran in dispute with SpiceJet

The Delhi High Court set aside an order which had upheld an arbitral award asking SpiceJet and its promoter Ajay Singh to refund ₹579 crore plus interest to media baron Kalanithi Maran.

The Delhi High Court on May 17 set aside a single judge bench order which had upheld an arbitral award asking SpiceJet and its promoter Ajay Singh to refund ₹579 crore plus interest to media baron Kalanithi Maran.

A bench of Justices Yashwant Varma and Ravinder Dudeja allowed the appeals filed by Mr. Singh and SpiceJet challenging the single judge’s July 31, 2023 order.

“The appeals stand allowed. Consequently the July 31, 2023 order (of the single judge) is set aside,” the bench said.

The division bench had earlier refused to stay the single judge’s order and had asked Mr. Maran and his company Kal Airways to respond to the appeal.

SpiceJet and Mr. Singh’s counsel had earlier argued that his challenge was on the issue of 18% interest which the tribunal had directed SpiceJet to pay.

On July 31, 2023, the single judge had upheld the award announced by the arbitral tribunal on July 20, 2018 in favour of Mr. Maran and Kal Airways.

It had said the court was barred from entering into the merits of an award unless there was an error that was apparent on the face of the record or an illegality that goes to the root of the matter.