No out-of-court deal with Jet, says Sahara

Mumbai: The Bombay High Court on Wednesday reserved its order on Sahara India Commercial Corporation's dispute with Jet Airways after Sahara informed the court that an out-of-court settlement between the two parties was not possible.
The dispute is over default in instalment payments by Jet for takeover of the erstwhile Sahara Airlines.
Jet bought Sahara Airlines from the Sahara Group 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 instalments.
The order, reserved by Justice DY Chandrachud, will also decide on Friday Sahara's claim that Jet Airways was liable to pay it Rs 2,000 crore instead of the renegotiated amount of Rs 1,450 crore for the takeover.
Sahara's contention is that the price would have been Rs 1,450 crore had Jet not defaulted on payment. But default it did and so the concession is not tenable. Both the parties have been asked to give their written submissions, if any, by Thursday.
The court had earlier asked Jet and Sahara to sit together and sort out their differences, but a mutual settlement could not materialise.
On March 31, the court had restrained Jet Airways from creating any third party interest on its assets, including 40 aircraft, until its dispute with Sahara was settled.
07/05/09 Anshika Misra/Daily News & Analysis

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Categories: Jet Airways May 2009