SC directs Mumbai High Court to hear Jet-Sahara disputes

28 August 2006

Mumbai: The Supreme Court has directed the Mumbai High Court to hear all disputes arising out of the failed acquisition of Sahara Airlines by Jet Airways. The apex court, however, did not vacate the stay granted on the escrow account and advance paid by Jet under the Rs 2,300 crore deal.

The order passed by a bench headed by chief justice Y K Sabharwal said the injunction granted by the Lucknow court would continue till further orders.

The Supreme Court, however, said it was of the view that the ends of justice would be met at one court, namely the Bombay High Court, with respect to the various clauses of the escrow, pledge and guarantee agreements. The court also asked the Bombay High Court to expeditiously decide the issue of jurisdiction.

The bench said the order would be subject to the High Court having inherent jurisdiction, adding that it will be open to respondent Sahara to urge before the Bombay High Court if it lacks inherent jurisdiction.

If it was found that the Bombay High Court has inherent jurisdiction then the petition filed by Jet Airways before the Lucknow court would be heard in Bombay.