HC lets Jet offer 3 planes on dry lease

Mumbai: Even as the Bombay High Court on Monday allowed Jet Airways to give three of its aircraft on a dry lease to Turkish Airways, it suggested that Jet and Sahara Airline mutually sort out their differences by Wednesday.
Justice D Y Chandrachud has slotted the hearing of the dispute between Jet Airways and Sahara India Commercial Corporation over the alleged violation of takeover agreement of the erstwhile Sahara Airline for April 29.
On March 31, the court had restrained Jet Airways from creating any third party interest on assets including 40 aircraft until its dispute with Sahara was settled. Sahara has argued that Jet was liable to pay Rs 2,000 crore instead of the renegotiated amount of Rs 1,450 crore for the buyout of the erstwhile Sahara airline, now Jetlite.
Modifying the March 31 order on a plea made by Jet, the court allowed the airline to give two aircraft on lease from June 25 and another one from July 25 to Turkish Airlines.
Jet's counsel Janak Dwarkadas contended that the wet lease was expiring on June 25 for two aircraft and on July 25 for another one. "We need to renew them," he said.
Jet bought Sahara Airlines in April 2007 for Rs 1,450 crore after an arbitration award. It paid Rs 900 crore and agreed to pay the balance in four installments.Jet's lawyer had earlier contended that in March 2008 the Income Tax department demanded tax dues of Rs 107 crore from Sahara Airlines.
28/04/09 Anshika Misra/Daily News & Analysis

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Categories: Jet Airways Apr 2009