Sahara, Jet Air file counter-pleas over earlier HC ruling
15 June 2011
The Bombay high court on Tuesday admitted Sahara India's appeal that Jet Airways is liable to pay interest at the rate of 18 per cent on payment due for the buyout of Air Sahara (now Jetlite) in 2007.
Earlier in an order by a single-judge bench, the high court had pegged the interest rate on the outstanding payment at 9 per cent, holding that Jet Airways was liable to pay Rs1,450 crore for the purchase.
In its appeal against the order, Sahara has made a claim for Rs2,000 crore, the original price for the buyout. It said the court had erred in holding that Jet Airways was liable to pay the renegotiated amount of Rs1,450 crore.
While admitting the plea, a division bench comprising chief justice Mohit Shah and justice J S Godbole also admitted Jet's appeal that it had not defaulted on payment after adjusting for tax, and is not liable to pay any interest.
The hearing for both the appeals has been fixed on 19 July. "Both the appeals from Sahara and Jet were admitted in the court. However, which are maintainable and which are not will be decided in next hearing," the division bench said.
In May, a single-judge bench had ordered Jet to pay Rs478 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 per cent from 2008.