HC adjourns hearing on Jet Airways arbitration petition to September 21
18 Sep 2006
Mumbai:
The Bombay High Court has adjourned hearing on an
arbitration petition filed by Jet Airways in connection
with its failed takeover of smaller rival Air Sahara.
Justice D K Deshmukh listed the matter for hearing on
September 21.
All cases related to the failed Rs2,200 crore deal have
been transferred and would be heard by the Bombay High
Court following a direction from the Supreme Court in
this regard, Jet Airways counsel Janak Dwarkadas told
reporters.
Jet had paid Rs 180 crore upfront for revival of Air Sahara
and deposited Rs500 crore in the Rs1,500-crore escrow
deposit in lieu of Air Sahara shares pledged with it as
part of the deal reached in January.
Jet Airways had submitted that it was losing Rs22 lakh per day on account of its funds being locked due to the collapsed deal.
Sahara moved a court in Lucknow, after the deal fell through in June for want of regulatory clearances, and secured an order restraining Jet from operating the escrow account.
Jet
then moved the Supreme Court which ordered transfer of
all petitions
filed by Sahara group in a Lucknow court to the Bombay
High Court.
As of now four petitions - two by Sahara Group and two
by Jet - are pending in the courts.
