BUSINESS

Jet deal: Sahara files caveat

Source:PTI
June 22, 2006

Air Sahara on Thursday filed a caveat at the Lucknow Bench of the Allahabad high court pleading that the company should be heard before any order is passed in the ongoing dispute over the transfer of management control to Jet Airways.

A Sahara spokesperson said this was done with an intent of getting an opportunity before anything is heard or decided on the dispute.

On Wednesday, Air Sahara secured an interim order from a Lucknow disctrict court restraining Jet from withdrawing money from the escrow account opened for its takeover by the latter till June 23, while informing the court that Jet Airways had terminated the takeover deal.

District Judge (Lucknow) Shiv Charan Sharma 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 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.

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 (Rs 23 billion) deal.

Sahara, in its petition, claimed that Rs 1,500 crore (Rs 15 billion) was lying in the escrow account. 

After filing the caveat this afternoon the counsel for
Sahara Bulbul Godiyal told PTI that it had been filed to enable Sahara to be heard if the opposite party (Jet) filed any petition in the high court.

"If a petition is filed by the opposite party, the court would also hear our side before passing any order," she said.

Click here to search for lowest airfares!

Source: PTI
© Copyright 2024 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.

NEXT ARTICLE

NewsBusinessMoviesSportsCricketGet AheadDiscussionLabsMyPageVideosCompany Email