Legal battle intensifies over Jet-Sahara dispute
The legal battle over the collapse of the Rs 2,300 crore deal to acquire Air Sahara by the Jet Airways on Wednesday intensified with the latter moving the Supreme Court for a stay on the operation of Lucknow district court order, freezing the escr...
By PTI |
NEW DELHI: The legal battle over the collapse of the Rs 2,300 crore deal to acquire Air Sahara by the Jet Airways on Wednesday intensified with the latter moving the Supreme Court for a stay on the operation of Lucknow district court order, freezing the escrow account and restraining it from selling Air Sahara shares pledged to it for an advance of Rs 500 crore.
Questioning the jurisdiction of the Lucknow Court in hearing the application moved by Sahara and passing an interim order, Jet filed a petition in the apex court seeking transfer of the proceedings to the Bombay High Court where it had already instituted proceedings under the Arbitration Act.
Terming the injunction order passed by the Lucknow District Court as "mala fide" and "abuse of process of the court", Jet said the order has caused serious and grave miscarriage of justice and it would continue to suffer irreparable harm, loss and prejudice if the proceedings were not transferred from Lucknow to Bombay High Court.
The development comes hours after a caveat filed by the Sahara group company to prevent any ex-parte hearing or order on the Jet petition.
In its transfer petition, Jet Airways requested the apex court to stay the operations of the interim orders passed on June 21 and 23 by Lucknow District Judge on the Escrow Account (opened by Jet for the Rs 2,300 crore deal) and restraining the sale of shares pledged by Air Sahara for Rs 500 crore.
The Jet petition was likely to come up for hearing before June 30 when the Lucknow District Court is scheduled to hear the Sahara plea.
Giving details of the Share Purchase Agreement (SPA) entered by it with Air Sahara for the acquisition deal, to be executed by June 21, Jet Airways contended that the Lucknow court did not have any jurisdiction to deal with the arbitration matter as the petitioner had already moved the Bombay High Court, the seat of arbitration mentioned in SPA.
Questioning the jurisdiction of the Lucknow Court in hearing the application moved by Sahara and passing an interim order, Jet filed a petition in the apex court seeking transfer of the proceedings to the Bombay High Court where it had already instituted proceedings under the Arbitration Act.
Terming the injunction order passed by the Lucknow District Court as "mala fide" and "abuse of process of the court", Jet said the order has caused serious and grave miscarriage of justice and it would continue to suffer irreparable harm, loss and prejudice if the proceedings were not transferred from Lucknow to Bombay High Court.
The development comes hours after a caveat filed by the Sahara group company to prevent any ex-parte hearing or order on the Jet petition.
In its transfer petition, Jet Airways requested the apex court to stay the operations of the interim orders passed on June 21 and 23 by Lucknow District Judge on the Escrow Account (opened by Jet for the Rs 2,300 crore deal) and restraining the sale of shares pledged by Air Sahara for Rs 500 crore.
The Jet petition was likely to come up for hearing before June 30 when the Lucknow District Court is scheduled to hear the Sahara plea.
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Giving details of the Share Purchase Agreement (SPA) entered by it with Air Sahara for the acquisition deal, to be executed by June 21, Jet Airways contended that the Lucknow court did not have any jurisdiction to deal with the arbitration matter as the petitioner had already moved the Bombay High Court, the seat of arbitration mentioned in SPA.
Jet pointed out that its petition under Section 9 of the Arbitration and Conciliation Act, 1996, pending in the Bombay High Court had been filed prior to the one filed by Sahara at Lucknow court and as such the District Judge, Lucknow was barred under Section 42 of the Act from exercising his jurisdiction.
Jet said the Bombay High Court being hierarchically superior to the Lucknow District Court to hear the petition therefore it would be proper to transfer the proceedings pending at Lucknow to the Bombay High Court to avoid conflict of orders.
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