Sahara to court: Deal called off by Jet
In a new twist to their battle, Air Sahara informed a Lucknow court that Jet has terminated the deal.
By PTI |
LUCKNOW/MUMBAI: In a new twist to their battle, Air Sahara on Wednesday informed a Lucknow court that Jet Airways has terminated the takeover agreement, while securing an interim order restraining Jet from withdrawing Rs 500 crore from the escrow account.
District and Session Judge Shiv Charan Singh also restrained ICICI Bank, where the account has been opened, not to make any payments to Jet.
The judge, in his interim order, said: "It has been alleged on behalf of the petitioner that the opposite party (Jet) has terminated the contract, hence there is a dispute and for which arbitrator is to be appointed in due course."
The court gave Jet Airways time till June 23, the next date of hearing, to file objections to Sahara's contention on the Rs 2,300 crore deal.
The order came on a petition filed by Sahara India Commercial Corporation Ltd, the holding company of Air Sahara, under section 9 of the Arbitration and Conciliation Act.
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While seeking the restraint order, the Sahara counsel told the court that it feared that Jet Airways would be at liberty to withdraw the escrow amount after midnight tonight, when the deadline for share purchase agreement expires.Meanwhile, Jet Airways approached the Bombay High Court seeking a similar restraint on Air Sahara, saying the conditions agreed upon like transfer of infrastructure facilities by June 21 has not been met. Hence, Air Sahara should not be allowed to operate the escrow account.
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