Jet can't sell Sahara's shares: Court
It also extended order freezing escrow account for Jet's takeover of Sahara.india Updated: Jun 23, 2006 20:20 IST
Extending the interim order freezing the escrow account opened for Jet Airways' proposed takeover of Air Sahara, the District Court in Lucknow on Friday restrained the former from selling the latter's share worth Rs 500 crore.
After three hours of inconclusive arguments during which Jet questioned the validity of Sahara's petition, District and Sessions Judge Shiv Charan Sharma posted further hearing to June 30 and said if necessary it will continue on July 1.
The Court said its order on freezing of the escrow account and on the Sahara share sale will continue till further orders.
Senior advocate Abhishekh Singhvi, appearing for Jet, contended that since the petition on the issue was filed by Naresh Goyal-promoted airlines before the Bombay High Court, the Lucknow court has no jurisdiction to entertain Sahara's petition.
Jet has also challenged the impleadment of ICICI bank in the petition along with Sahara, contending that the bank was not party to the failed Rs 2,300 crore deal.
However, Sahara, which on Wednesday, had succeeded in restraining the Jet from withdrawing the escrow account, opposed argument on maintainability of its petition saying that the deal was signed in Lucknow as such the court here has full jurisdiction on the issue.
Further, senior advocate Dushyant Dave, appearing for Sahara, submitted that the Bombay High Court has not yet taken cognisance of Jet's petition.