SpiceJet will seek a refund Rs 450 crore from its former promoter Kalanithi Maran after the Delhi High Court last week ruled in the airline's favour in a protracted share transfer dispute.

In a statement on Wednesday, the budget carrier said it had paid Rs 730 crore to Maran's firm KAL Airways – Rs 580 crore in principal and Rs 150 crore as interest – as per an arbitration tribunal's order in 2018 that was upheld by a single-judge bench in 2023.

A division bench of the Delhi High Court overturned that ruling on May 17, paving the way for SpiceJet to seek a refund of Rs 450 crore.

The case dates back to 2015 when Maran exited SpiceJet by transferring his 58.46 per cent stake to the airline's current promoter, Ajay Singh, for a token Rs 2 amid cash flow troubles. Maran later alleged breach of agreement over non-issuance of certain share warrants, staking claim to Rs 1,300 crore.

The refund of Rs 450 crore comes as a relief for SpiceJet which has been grappling with a cash crunch for several quarters amid multiple legal battles over unpaid dues to aircraft lessors, engine lessors, lenders and Maran himself.

In a statement, the airline said: "SpiceJet will seek a refund of Rs 450 crore out of the Rs 730 crore it has previously paid to former promoter Kalanithi Maran and his firm, KAL Airways, following the Delhi High Court’s order on May 17."

Aviation consultancy CAPA India had in December stated that SpiceJet's resurgence, once the new funding is in place, has the potential to disrupt the Indian aviation market as the airline will bring its grounded aircraft back into service and lease more planes to regain competitive relevance.

Aviation analysts expect the airline's prospects to brighten once the fresh funding of Rs 2,241 crore approved by shareholders earlier this year is fully in place. SpiceJet has raised around Rs 1,060 crore through two tranches of a preferential equity issue.

The airline said it will use the Rs 2,241 crore it is raising from shareholders to pay statutory dues like TDS, GST, provident fund, settle past creditor payments, unground grounded aircraft, acquire new planes, pay for aviation turbine fuel and employee salaries, and general corporate purposes.