New Delhi, March 17 -- Budget airline SpiceJet told the Delhi high court on Tuesday that it faces a severe liquidity crunch and is unable to deposit Rs.144.5 crore as directed in its ongoing arbitration dispute with Kalanithi Maran and KAL Airways Pvt. Ltd.

Almost 40% of SpiceJet's flights to Gulf destinations have been cancelled due to the ongoing war, worsening its financial position, the carrier said in a submission made before a bench of Justice Subramonium Prasad.

SpiceJet had filed a fresh plea seeking relief from the direction to deposit Rs.144 crore within six weeks to comply with its payment obligations to Maran and KAL Airways.

Even before the war in Iran, SpiceJet had a liquidity crunch because it suffered losses, senior cou...