HC asks Jet, Sahara to move AT

Mumbai: In a setback to Jet Airways, the Bombay High Court on Wednesday asked the airline to approach the arbitration tribunal for resolving the dispute over the bank guarantee given to Air Sahara for the failed takeover deal.
Jet Airways had last year submitted a bank guarantee of Rs 500 crore for a share-purchase agreement (SPA) to acquire Air Sahara, but the deal went sour. The companies had earlier approached an Arbitration Tribunal (AT) in London to resolve the matter related to the failed takeover deal, but the issue of bank guarantee was not included.
Jet had moved the High Court to get the guarantee money back, but a bench of Justice D K Deshmukh today disallowed the petition and asked the carrier to approach the tribunal.
Sahara's counsel Fali Nariman had earlier contended that the guarantee money was incorporated as part of the SPA and should be dealt with by the tribunal.
28/02/07 PTI/Economic Times

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Categories: Air Sahara Mar 2007, Jet Airways Mar 2007