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<b>Bombay HC can decide Jet-Sahara case</b>

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Our Bureau Mumbai
Last Updated : Jan 19 2013 | 9:22 PM IST
 Updated at 1520 hrs: The Bombay High Court today began hearing arguments on whether it had the jurisdiction to adjudicate a dispute between Jet Airways and Lucknow-based Air Sahara over a collapsed takeover deal.

The counsel of Jet Airways contended before Justice D K Deshmukh that since the agreements for the deal, escrow account and pledging of shares were signed here, the High Court indeed had the jurisdiction to hear the matter.

The Supreme Court had, in August, transferred all petitions relating to the Jet-Sahara dispute before the Bombay High Court.

"With respect to the various clause of the escrow, pledge and gurantee agreement, we are of the view that ends of justice will be met at one court, namely Bombay High Court. This is subject to Bombay High Court having inherent jurisdiction to entertain the disputes," a Supreme Court Bench had said.

The dispute relates to the failed deal for the take over of Air Sahara by Jet Airways. As part of the deal, reached in January, Jet had paid Rs 180 crore for the revival of Air Sahara and Rs 500 crore in lieu of Air Sahara shares pledged with it besides depositing Rs 1,500 crore in the escrow account opened for the purpose.

After the deal fell through over absence of regulatory clearances on June 21, Sahara moved a court in Lucknow seeking to bar Jet from operating the escrow account.

In all, four petitions (two by the Sahara Group and as many by Jet) are pending in connection with the matter.

 

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First Published: Sep 21 2006 | 5:07 PM IST

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