The Delhi High Court has dismissed appeals filed by Kalanithi Maran, a prominent businessman, and KAL Airways against SpiceJet and its promoter Ajay Singh. The appeals were related to a 2023 arbitral award, which the appellants had challenged. However, the court found that the appellants had delayed the filing and re-filing of their challenge, engaging in a “calculated gamble” that ultimately proved unsuccessful.
The arbitral award in question was issued in 2023, and the appellants had initially filed a challenge against it. However, they subsequently withdrew their challenge and then re-filed it, citing new grounds. The respondents, SpiceJet and Ajay Singh, argued that the appellants’ actions were a deliberate attempt to delay the proceedings and avoid the consequences of the arbitral award.
The court agreed with the respondents, holding that the appellants’ conduct was indeed a “calculated gamble” designed to delay the proceedings. The court noted that the appellants had taken a deliberate risk by withdrawing and re-filing their challenge, and that this risk had not paid off. As a result, the court dismissed the appeals, upholding the 2023 arbitral award.
The dismissal of the appeals is a significant setback for Kalanithi Maran and KAL Airways, who had hoped to overturn the arbitral award. The court’s decision is also a victory for SpiceJet and Ajay Singh, who had defended the award and argued that the appellants’ actions were unjustified. The case highlights the importance of prompt and timely filing of challenges to arbitral awards, and the risks of delaying or re-filing such challenges.
The Delhi High Court’s decision is also significant because it emphasizes the need for parties to act in good faith and with promptness in arbitration proceedings. The court’s finding that the appellants engaged in a “calculated gamble” suggests that they had attempted to manipulate the proceedings to their advantage, which is not permissible under the law. The decision sends a strong message to parties involved in arbitration proceedings to act with integrity and transparency, and to avoid using delaying tactics to avoid unfavorable outcomes. Overall, the dismissal of the appeals is a significant development in the ongoing dispute between Kalanithi Maran, KAL Airways, and SpiceJet, and is likely to have implications for the parties involved.