Supreme Court issues notices to Sahara India, Jet Airways on sellout dispute

New Delhi: The Supreme Court on Friday issued notices on cross-appeals by Sahara India and Jet Airways challenging a Bombay High Court order. The dispute between the two companies relates to the amount to be paid by Jet following its acquisition of Air Sahara (now JetLite) in April 2007.
Under the agreement, Sahara had agreed to sell its entire 100% shareholding in Sahara Airlines for Rs 2,000 crore. This amount was, however, reduced to Rs 1,450 crore after arbitration. The division bench of the Bombay HC on October 17 had dismissed the appeals filed by both Sahara and Jet saying they were not maintainable. Sahara had claimed that Jet was liable to pay the original payout amount of Rs 2,000 crore.
The HC bench had also dismissed Jet's plea challenging the order of singlejudge order of May 6 directing it to pay. 478 crore to Sahara as dues for the buyout of its airline business. An SC bench comprising Justice Altamas Kabir and Justice SS Nijjar asked the companies to file their replies within six weeks and rejoinders within two week after that.
Sahara claims that Jet Airways is liable to pay Rs 2,000 crore, the original buyout price, as it defaulted in paying installments.
03/02/11 Sanjay K Singh/Economic Times

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Categories: Jet Airways Dec 2011