Bombay High Court adjourns case between Subrata Roy Sahara and Jet Airways to August 3

MUMBAI: The Bombay High Court on Tuesday adjourned the case between Subrata Roy Sahara versus Jet Airways (India) to August 3, where the former had appealed that Jet Airways is liable to pay an interest rate of 18% on payment after acquiring Air Sahara (now Jetlite).

In mid June, Sahara India had challenged a high court order that pegged the interest rate on the outstanding payment at 9%. The case is being heard in a division bench comprising Chief Justice Mohit Shah and Justice JS Godbole.

The court is also hearing Jet's appeal that it had not defaulted on payment adjusting for tax and is not liable to pay any interest.

Two months ago, a single-judge bench had ordered Jet to pay 478 crore to Sahara within two weeks as dues for Air Sahara buyout. The default amount was calculated on the renegotiated deal price of 1,450 crore at a rate of 9% from 2008.

The outgo could impact Jet's financials, which is already under stress on rising fuel cost and unfavorable market condition to raise money to retire debt and expand.

Law firm DSK Legal is representing Subroto Roy's Sahara, while Jet is represented by Gagrats & Co. On Tuesday, the Jet Airways scrip closed at 512.30 on Bombay Stock Exchange, up 1.43% from the previous close.