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The Supreme Court of India has expressed strong dissatisfaction with a recent judgment from a single judge bench of the Delhi High Court in the high-profile arbitration case involving media tycoon Kalanithi Maran and SpiceJet. The apex court criticized the Delhi High Court’s handling of the case, labeling the judgment as “atrocious” and lacking in thoughtful analysis.
The controversy centers around an arbitral award that ordered SpiceJet to refund ₹579 crore plus interest to Maran and his company, Kal Airways. The award was initially upheld by a single judge bench of the Delhi High Court on July 31, 2023. However, on May 17, 2024, a division bench of the Delhi High Court overturned this decision, setting aside the arbitral award and remanding the case for reconsideration.
During a recent hearing, Chief Justice DY Chandrachud, along with Justices JB Pardiwala and Manoj Misra, expressed frustration with the length and substance of the single judge bench’s judgment. Chief Justice Chandrachud noted that the judgment, which spanned 250 pages, appeared to lack a proper application of legal principles. He remarked that the judgment did not adequately address the grounds of challenge or demonstrate whether interference with the arbitral award was justified.
“This is atrocious,” Chief Justice Chandrachud said, criticizing the single judge’s approach. He emphasized that a judgment under Section 34 of the Arbitration and Conciliation Act should be more than a mere citation of previous Supreme Court rulings. “Where has the judge even applied his mind?” he questioned.
The Supreme Court has recommended that the case be reassigned to a different judge in the Delhi High Court for a fresh review. This recommendation aims to ensure that the legal and factual aspects of the dispute are properly considered.
The dispute began when an arbitration tribunal issued an award in favor of Maran and Kal Airways on July 20, 2018. The tribunal’s decision mandated SpiceJet’s promoter, Ajay Singh, to refund the substantial amount to Maran and his company. Despite the initial upholding of the award, the Delhi High Court’s division bench decision in May 2024 led to the current appeal before the Supreme Court.
Maran and Kal Airways have appealed to the Supreme Court, challenging the division bench’s decision and seeking to reinstate the arbitral award. The Supreme Court’s intervention highlights ongoing concerns about the quality and thoroughness of judicial reasoning in high-stakes arbitration cases.
Sources By Agencies
