Spicejet Limited vs Kal Airways Pvt Ltd & Ors.

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* IN THE HIGH COURT OF DELHI AT NEW DELHI
Reserved on: 28 September 2026
Pronounced on:13 October 2026
# CNR No. DLHC010053612018
+ O.M.P. (COMM) 42/2019, I.A. 17768/2026 & I.A. 23582/2026
SPICEJET LIMITED .....Petitioner
Through: Mr. Amit Sibal, Sr. Adv. with Mr. K.
R. Sasiprabhu, Mr. Yasharth Mishra
and Mr. Darpan Sachdeva, Advs.
versus
KAL AIRWAYS PVT LTD & ORS. .....Respondents
Through: Mr. Jayant Mehta, Sr. Adv. with Ms.
Mansvini Jain, Ms. Nandini Gore, Mr.
Akash Sharma and Mr. Vedant
Choudhary, Advs.

CORAM:
HON'BLE MR. JUSTICE VINOD KUMAR
ORDER
% 13.10.2026
I.A. No 26867/2026 (extension of timeline for depositing the amount) in
O.M.P. (COMM) 42/2019
1. The present application has been filed by the Petitioner, i.e., SpiceJet
Limited in O.M.P.(COMM) 42/2019 under Section 151 of the Code of Civil
Procedure, 1908, seeking extension of the timeline stipulated by this Court
vide order dated 13.07.2026 for depositing a sum of Rs.144,51,69,887/- with
the Registry of this Court till mid of December 2026 in the manner
contemplated by the order dated 13.07.2026, i.e. Rs.50 crores within 45 days
and the balance amount of Rs.94,51,69,887/- within 90 days. The Petitioner
has, in the meantime, also sought permission to deposit with the Registry the
original title documents of the property bearing Plot No.114, Udyog Vihar,
Phase-I, Gurgaon, as security till the aforesaid amount is deposited.
Signature Not Verified
Signed By:PRAMOD
KUMAR VATS
Signing Date:16.10.2026
14:35:51
I.A. No 26867/2026 in O.M.P. (COMM) 42/2019 Page 1 of 10

2. The relevant background to the present application is that the amount
of Rs.144,51,69,887/- represents the balance of the interest liability
remaining payable under the Arbitral Award, as per the calculation furnished
by the Petitioner in the enforcement proceedings. Vide order dated
13.02.2023, the Hon’ble Supreme Court directed encashment of the bank
guarantee to ensure payment of the principal sum due under the Award in its
entirety. The Hon’ble Supreme Court further directed the Petitioner to pay
Rs.75 crores towards interest, pending disposal of the petition under Section
34 of the Arbitration and Conciliation Act, 1996, stipulating that in the event
of default, the Arbitral Award would become executable forthwith in its
entirety. Thereafter, vide order dated 29.05.2023, this Court directed the
Petitioner to deposit the entire outstanding amount towards interest in view
of the failure to pay the aforesaid amount of Rs.75 crores. The Petitioner’s
applications seeking extension of time to comply with the directions of the
Hon’ble Supreme Court were subsequently dismissed vide order dated
07.07.2023.
3. As per the petitioner, according to its calculation, the interest payable
under the Award was Rs.294,51,69,887/- and that, after adjustment of
Rs.100 crores already paid towards interest, a further sum of
Rs.194,51,69,887/- remained payable. This Court took note of the said
admission vide order dated 20.11.2023. Thereafter, vide order dated
05.02.2024, this Court directed the Petitioner to pay Rs.50 crores out of the
aforesaid outstanding amount within six weeks. Upon compliance with the
said direction, the balance amount of Rs.144,51,69,887/- remained payable.
Signature Not Verified
Signed By:PRAMOD
KUMAR VATS
Signing Date:16.10.2026
14:35:51
I.A. No 26867/2026 in O.M.P. (COMM) 42/2019 Page 2 of 10

4. Vide order dated 19.01.2026, this Court directed the Petitioner to
deposit the aforesaid balance amount of Rs.144,51,69,887/- with the
Registry of this Court within six weeks. The challenge to the said order
before the Hon’ble Supreme Court was dismissed vide order dated
27.02.2026, with costs of Rs.1 lakh.
5. Thereafter, the Petitioner approached this Court seeking permission to
furnish its property bearing Plot No.114, Udyog Vihar, Phase-I, Gurugram,
as security in lieu of the cash deposit. Vide order dated 18.03.2026, this
Court declined the request to substitute the cash deposit with the said
property, while granting the Petitioner a further period of four weeks to
make an endeavour to sell the property and arrange the requisite amount.
The review petition preferred against the said order were subsequently
dismissed, and no further enlargement of time was granted.
6. The Petitioner thereafter approached the Hon’ble Supreme Court.
Vide order dated 19.05.2026, the Hon’ble Supreme Court declined to
interfere with the orders passed by this Court, while permitting the Petitioner
to approach this Court in view of the subsequent developments relating to
the Emergency Credit Line Guarantee Scheme 5.0 (ECLGS) and the
pendency of the proceedings under Section 34 of the Arbitration and
Conciliation Act, 1996.
7. Pursuant thereto, the Petitioner filed application seeking directions in
the light of the aforesaid order of the Hon’ble Supreme Court. During the
consideration of the said applications, the Petitioner placed on record an
additional affidavit dated 10.07.2026, proposing to deposit the outstanding
Signature Not Verified
Signed By:PRAMOD
KUMAR VATS
Signing Date:16.10.2026
14:35:51
I.A. No 26867/2026 in O.M.P. (COMM) 42/2019 Page 3 of 10

amount of Rs.144,51,69,887/- in two tranches on the basis of the anticipated
disbursement of financial assistance under the ECLGS.
8. The proposal placed before this Court contemplated receipt of a
second tranche of Rs.349 crores under the ECLGS, following which the
Petitioner would deposit Rs.50 crores within 45 days. The Petitioner further
anticipated receipt of a third tranche of Rs.500 crores and undertook to
deposit the remaining amount of Rs.94,51,69,887/- within 90 days.
9. Vide order dated 13.07.2026, this Court accepted the undertaking of
the Petitioner to deposit Rs.50 crores with the Registry within 45 days and
the balance amount of Rs.94,51,69,887/- within 90 days. The applications
were directed to be listed on 21.09.2026 to test the bona fides of the
Petitioner. The first instalment of Rs.50 crores was required to be deposited
by 27.08.2026. However, the said undertaking was not complied with. The
Petitioner has attributed the non-compliance to the non-sanction and non-
disbursement of the second tranche of Rs.349 crores under the ECLGS.
10. The present application has now been filed seeking extension of time
to comply with the order dated 13.07.2026, along with permission to deposit
the original title documents of the aforesaid property as interim security,
principally on the ground that the second tranche of Rs.349 crores under the
ECLGS, which according to the Petitioner formed the financial basis for the
proposal made in the additional affidavit dated 10.07.2026, has not been
sanctioned/disbursed. It is submitted that the Petitioner had applied for the
said tranche on 26.06.2026 and that, unlike the first tranche of Rs.151
crores, the second tranche is still remained pending.
Signature Not Verified
Signed By:PRAMOD
KUMAR VATS
Signing Date:16.10.2026
14:35:51
I.A. No 26867/2026 in O.M.P. (COMM) 42/2019 Page 4 of 10

11. Learned Senior Counsel appearing for the Petitioner submits that the
proposal recorded in the order dated 13.07.2026 was made under bona fide
expecting that the ECLGS funds would be sanctioned and disbursed within
the contemplated timeframe. It is submitted that the Petitioner had no reason
to anticipate the delay in disbursement of the second tranche of Rs.349
crores and that the inability to comply with the timeline stipulated in the
order dated 13.07.2026 is consequently not deliberate or wilful.
12. Learned Senior Counsel submits that the second tranche of Rs.349
crores was crucial to the financial and operational stabilisation of the
Petitioner-company. It is submitted that the Petitioner has been continuously
taking steps with the lending institution as well as the concerned authorities
for sanction and disbursement of the amount, but the same has not been
received till date. It is further submitted that the Petitioner continues to
remain hopeful that the amount would be disbursed by the end of November
or middle of December, 2026.
13. Learned Senior Counsel further submits that the circumstances
affecting the Petitioner-company have aggravated on account of the West
Asia crisis and the consequent impact upon its operations. It is submitted
that the number of flights being operated by the Petitioner have substantially
reduced and that a direction requiring immediate cash deposit of
Rs.144,51,69,887/- would have serious consequences for its continued
operations.
14. Learned Senior Counsel further submits that the Petitioner has already
deposited substantial amounts pursuant to the arbitral award. A total amount
of approximately Rs.729.08 crores has already been deposited and disbursed
Signature Not Verified
Signed By:PRAMOD
KUMAR VATS
Signing Date:16.10.2026
14:35:51
I.A. No 26867/2026 in O.M.P. (COMM) 42/2019 Page 5 of 10

to the Respondents, which includes the entire principal amount of Rs.529.08
crores and Rs.150 crores towards interest.
15. Learned Senior Counsel further submits that the Hon'ble Supreme
Court, vide its order dated 19.05.2026, had specifically permitted the
Petitioner to approach this Court in view of the subsequent development
concerning the ECLGS and the pendency of the Section 34 petitions. It is
submitted that the order dated 13.07.2026 was thereafter passed upon
consideration of the proposal of the Petitioner, which proposal itself was
dependent upon receipt of the ECLGS funds. The present application,
according to the Petitioner, therefore arises from a subsequent circumstance,
namely, the non-disbursement of the second tranche of Rs.349 crores.
16. Learned Senior Counsel for Petitioner also seeks permission to
deposit the original title documents of Plot No.114, Udyog Vihar, Phase-I,
Gurgaon with the Registry as an interim security till the ECLGS amount is
received and the cash deposit is made.
17. It is submitted that the said property is presently unencumbered and
has been valued by a Government approved valuer at approximately
Rs.147.77 crores. Learned Senior Counsel submits that the Petitioner are
willing to deposit the original title documents with the Registry and
undertake that the property would not be dealt with without the leave of this
Court.
18. Learned Senior Counsel for Petitioner further submits that the
Petitioner are also willing to continue their efforts for sale of the property
and, in the event of a suitable transaction being finalised before receipt of
Signature Not Verified
Signed By:PRAMOD
KUMAR VATS
Signing Date:16.10.2026
14:35:51
I.A. No 26867/2026 in O.M.P. (COMM) 42/2019 Page 6 of 10

the ECLGS funds, the same would be undertaken only with the permission
of this Court and the sale proceeds would be utilised towards the amount
directed to be deposited.
19. Learned Senior Counsel submits that the Respondents are already
secured to a substantial extent by the amounts which have been paid
pursuant to the arbitral award and that no prejudice would be caused to the
Respondents if a limited extension is granted. Learned Senior Counsel
submits that the grant of some further time would also enable the parties to
explore an amicable settlement, particularly when mediation proceedings
have been initiated.
20. Learned Senior Counsel also submits that the Respondents have
meanwhile initiated enforcement proceedings and have filed applications
seeking, attachment of the bank accounts and property of the Petitioner. It is
submitted that the present application has consequently become necessary in
order to seek appropriate directions from this Court before coercive steps are
taken pursuant to the enforcement proceedings.
21. Learned Senior Counsel for the Respondents, on the other hand,
opposes the present applications. He submits that the amount of
Rs.144,51,69,887/- is an admitted outstanding amount and that the direction
for its deposit has been the subject matter of repeated proceedings before
this Court as well as before the Hon'ble Supreme Court.
22. Learned Senior Counsel for Respondent submits that the Petitioner
have, on earlier occasions, relied upon their financial difficulties, the
pendency of the Section 34 proceedings and the circumstances affecting the
Signature Not Verified
Signed By:PRAMOD
KUMAR VATS
Signing Date:16.10.2026
14:35:51
I.A. No 26867/2026 in O.M.P. (COMM) 42/2019 Page 7 of 10

aviation sector for seeking modification or enlargement of the time granted
for making the deposit. It is submitted that these grounds have already been
considered in the earlier proceedings and cannot furnish a basis for
repeatedly seeking extension of the timeline.
23. Learned Senior Counsel further submits that the order dated
19.01.2026 directing deposit of the admitted outstanding amount was
challenged before the Hon'ble Supreme Court and the challenge was
dismissed with costs. It is submitted that the Petitioner thereafter sought
permission to furnish the same property as security in lieu of the cash
deposit, which prayer was rejected by this Court. The Review Petition
challenging the said order were also dismissed.
24. Learned Senior Advocate for Respondent submits that the Petitioner
have already been granted repeated indulgence and extensions of time and
that the Respondents, having obtained an executable arbitral award and
having remained unpaid in respect of the admitted outstanding amount,
cannot be deprived indefinitely of the fruits of the award.
25. Learned Senior Counsel further submits that the subsequent non-
disbursement of the ECLGS amount cannot, by itself, indefinitely extend the
time granted by this Court for compliance with the order dated 13.07.2026.
It is submitted that the proposal made by the Petitioner on 10.07.2026 and
the undertaking recorded on 13.07.2026 were made by the Petitioner
themselves and that the Respondents cannot be made to bear the
consequences of the Petitioner’s inability to arrange the funds contemplated
under the said proposal.
Signature Not Verified
Signed By:PRAMOD
KUMAR VATS
Signing Date:16.10.2026
14:35:51
I.A. No 26867/2026 in O.M.P. (COMM) 42/2019 Page 8 of 10

26. Learned Senior Counsel further submits that the prayer regarding
deposit of the title documents of Plot No.114 is, in substance, another
attempt to secure the admitted outstanding amount by means other than the
cash deposit, which prayer has already been considered and rejected by this
Court in the earlier proceedings. It is submitted that the Petitioner cannot
seek to revive the same prayer merely by describing the property as “interim
security” instead of offering it “in lieu of” the cash deposit.
27. Learned Senior Counsel accordingly submits that the present
applications do not disclose any sufficient ground for further enlargement of
time and that the prayer for permitting the Petitioner to deposit the title
documents of the property as security is also liable to be considered in the
backdrop of the orders already passed by this Court.
28. I have considered the rival submissions. Perusal of the record shows

that the amount of Rs.144,51,69,887/- is yet to be deposited by the
Petitioner. As recorded in order dated 13.07.2026, the Petitioner has agreed
to make payment of INR 50 crore within 45 days and INR 94.51 crore
within 90 days.
29. I agree that the Petitioner is under severe financial constraints but at
the same time, interest of the Respondent company is also required to be
protected. The Petitioner had already taken several extensions of time in
depositing the amount.
30. This Court vide order dated 13.07.2026 listed the application on
21.09.2026 to see as to whether the undertaking of the Petitioner is bonafide
or not. As already stated, on 13.07.2026 the Petitioner had undertaken to
Signature Not Verified
Signed By:PRAMOD
KUMAR VATS
Signing Date:16.10.2026
14:35:51
I.A. No 26867/2026 in O.M.P. (COMM) 42/2019 Page 9 of 10

deposit Rs.50 crores with Registry and thereafter balance amount of
Rs.94.51 crores within 90 days. Admittedly Rs.50 crores have not been
deposited. In this situation, repeated extensions cannot be granted. This
Court could have taken a lenient view in respect of time limit of second
instalment, had the Petitioner complied with their own undertaking of
depositing Rs.50 crores with the Registrar General within 45 days. Even
this first part of undertaking has not been complied with. So far as
submitting original documents of property in Gurugram is concerned, such
request has already been rejected by this Court vide order dated 18.03.2026 .
31. Though at that time, the property was under mortgage and now it is
unencumbered, this Court is more concerned about Petitioner’s own
undertaking to deposit Rs.50 crores within 45 days. Had Petitioner
deposited Rs.50 crores, this Court could have entertained the plea of
depositing the documents pertaining the property at Plot No. 114, Udyog
Vihar, Phase 1, Gurgaon as security with the Registry of this Court for
permitting the amount of INR 94,51,69,887 to be deposited by December
2026. However, as the Petitioner has not deposited Rs.50 crores as per his
undertaking, I am not inclined to accept the documents of property as a
security.
32. Application is accordingly dismissed.

VINOD KUMAR, J
SEPTEMBER 28, 2026/ dd/harshit
Signature Not Verified
Signed By:PRAMOD
KUMAR VATS
Signing Date:16.10.2026
14:35:51
I.A. No 26867/2026 in O.M.P. (COMM) 42/2019 Page 10 of 10