Bombay HC brings the curtain down on Jet’s Air Sahara acquisition
17 Oct 2011
A two-judge bench of the Bombay High Court today dismissed an appeal filed by Sahara India challenging its earlier order which had held that Jet Airways was liable to pay Rs1,450 crore for purchase of Sahara Airlines (now Jetlite). It also dismissed a counter appeal filed by Jet Airways which had challenged the earlier order of the High Court asking them to pay balance dues to Sahara at an interest of 9%.
According to Sahara India, Jet Airways was liable to pay Rs2,000 crore, which was the original buyout price of their airline instead of the renegotiated amount of Rs1450 crore, reduced as Jet decided to deduct income tax dues.
The court also dismissed an appeal filed by Jet Airways which had challenged the earlier order of the High Court asking them to pay the balance dues to Sahara at the interest of 9%.
Jet Airways had contended that they were not liable to pay the interest at the above rate because they had not defaulted and had only deducted income tax dues, which were liable to be paid by Sahara.
Chief justice Mohit Shah and justice GS Godbole dismissed both the appeals of Sahara India and Jet Airways, saying they were not maintainable.