Arbitration tribunal begins final hearing in Jet-Sahara case
The final hearing in the Jet-Sahara arbitration proceedings over the failed Rs 2,300 crore takeover deal between the two airlines began on Monday.india Updated: Apr 09, 2007 23:32 IST
The final hearing in the Jet-Sahara arbitration proceedings over the failed Rs 2,300 crore takeover deal between the two airlines began on Monday.
A source close to one of the parties said that talks have begun between the parties and will continue on a day-to -day basis for the next two weeks.
While not much transpired between them, as the meeting ended at noon, non-parties to the arbitration are being kept at arms length, the source said.
The case has reached the stage of final hearing seven months after proceedings were initiated.
The three-member tribunal headed by British judge Lord Stein includes retired Supreme Court Chief Justice S P Bharucha arbitrating for Jet Airways and Justice Jeevan Reddy for Air Sahara.
The deal turned sour after Air Sahara allegedly failed to meet conditions precedent to the deal for Jet Airways to the takeover.
With over Rs 2,000 crore as consideration, the deal last January was a share-purchase agreement between Jet Airways and Air Sahara.
As part of the deal, Jet paid Rs 180 crore for revival of Air Sahara and Rs 500 crore for its shares, besides depositing Rs 1,500 crore in an escrow account opened for the purpose.
However, the Bombay High Court had allowed Jet Airways to withdraw Rs 1,500 crore from the escrow account against a bank guarantee of the same amount in September last year.
After the deal fell through, following Jet's failure to get regulatory clearances by the deadline of June 21 last year, both parties moved court and the matter was directed for arbitration.