SpiceJet has asked the Delhi High Court for more time to pay Rs 50 crore to Kal Airways after missing an August 27 deadline. The airline says it is waiting for government-backed credit funds, highlighting the continued financial strain facing the company. The matter is set for further hearing on September 21, 2026.
SpiceJet and its promoter, Ajay Singh, have sought an extension from the Delhi High Court to fulfill a Rs 50 crore deposit obligation to Kal Airways. The company missed the August 27, 2026, deadline, which was part of a court-ordered payment structure linked to a long-standing ownership and warrant dispute with Kalanithi Maran.
During the court proceedings, the airline’s legal team explained that the delay stems from the pending receipt of a second tranche of emergency credit support from the federal government. The airline noted that it had fully utilized the first portion of this government-backed funding for urgent operational costs, such as fuel, airport charges, and employee salaries. The company is now waiting for the next installment of these funds, which it anticipates receiving by mid-September.
The Delhi High Court has deferred the request for an extension and has not provided immediate interim relief. The matter is now scheduled for a hearing on September 21, 2026, which coincides with the next date set for the primary legal dispute. This puts the airline in a tight spot, as the court's decision will be closely watched by investors concerned about the company’s ability to comply with ongoing legal obligations while managing tight cash flows.
The airline's stock has faced significant selling pressure over the past year, recently trading near Rs 10.55. This decline reflects broader investor concerns regarding the company’s financial health, which has been under stress due to high debt, recurring losses, and ongoing legal battles with various lessors and creditors. The company's reliance on external government-backed credit to meet both operational needs and court-mandated payments underscores its limited internal financial flexibility.
The legal dispute dates back to 2015 when Kalanithi Maran and his firm, Kal Airways, transferred their stake in SpiceJet to Ajay Singh. The current disagreement centers on an admitted liability of approximately Rs 144.5 crore arising from an arbitral award. While the company continues to work through these legal challenges, its path to recovery remains complex. Investors and stakeholders will be watching the September 21 court date, as well as any updates on the release of the pending government credit funds, as these are critical to the company’s ability to stabilize its financial position and meet its commitments.