SC transfers Jet Sahara proceedings to HC

By Staff
|
Google Oneindia News

New Delhi, Aug 28: The Supreme Court today ordered that all the proceedings pending in the court of District judge, Lucknow filed by Sahara Commercial Corporation Limited shall be transfered to Bombay High Court where the two petitions filed by Jet Airways are already pending.

The deal involving the sale of Sahara Airways to Jet Airways which failed to materialise now revolves around Rs 2000 cr which are lying with M/S Escrow.

A bench comprising Chief Justice Y K Sabharwal and Justice C K Thakker, however, directed the High Court to decide in accordance with law if the issue of inherent lack of jurisdiction in Bombay High Court was raised by the parties.

The court also ruled that in case, however, it is found that Bombay High Court has the jurisdiction then all the proceedings would be heard together by Bombay High Court.

The court also ruled that interim injunction granted by Lucknow District Judge restraining M/S Escrow from releasing Rs 1500 cr to Jet Airways shall continue till further orders were passed by Bombay High Court.

Both the parties have been directed to appear before Bombay High Court on September 11, 2006 and the Lucknow District Court has been directed to send the files of the two cases pending there to Bombay High Court.

Refusing to express any opinion on the point of jurisdiction, the Supreme Court requested the High Court to decide the matter expeditiously.

The court also noted in its order that it has not permitted the counsel for Sahara Airways to raise the issue of inherent lack of jurisdiction and said '' in our view, hands of justice shall be served if all the proceedings are heard and decided by one court namely Bombay High Court.'' Earlier senior counsel Harish Salve appearing for Jet Airways who has filed transfer petition contended that all the agreements signed between the parties expressely mentioned that all the disputes and arbritation proceedings in relation to any dispute between the parties shall be filed and decided by Bombay High Court.

Salve also contended that the injunction granted by the Lucknow Court was costing Rs 20 lakhs per day to the petitioner whose Rs 2000 cr has been blocked in the litigation.

Senior counsel Mukul Rohatagi appearing for Sahara Airways, however, contended that the principal contract namely share purchase agreement dates January 18, 2006 was executed at Lucknow and all the subsequent agreements were only signed to effectuate the main contract and hence the Bombay High Court has no jurisdiction in the matter at all.

He also contended that the reputation and goodwill of his company has been ruined by his rival through manipulation and now they want to get away with the pledged money (1500 cr) and guarantee money (500 cr).

The petition was filed by Sahara Airways in Lucknow on June 20 ,2006 and restraint order was passed by the Lucknow District Judge the next day.

Jet Airways filed an arbitration petition in Bombay High Court on June 23, 2006. In all four petitions have been filed in the case , 2 at Lucknow by Sahara Airways and 2 at Bombay High Court by Jet Airways .

The deal had fallen through after Jet Airways refused to extend the time for fulfilling the conditions of the contract. Extension of time was sought by Sahara Commercial Ccorporation which had 7 shareholders.

UNI

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