Jet-Sahara case lands in SC
Rejecting Jet's allegation, Civil Aviation Minister said acquisition policy cannot be tailor-made to suit any airline.india Updated: Jun 30, 2006 12:11 IST
The dispute over the failed acquisition of Air Sahara on Wednesday landed in the Supreme Court, with Jet Airways seeking transfer of related litigation in a Lucknow court to Bombay High Court citing jurisdiction issues.
But Sahara moved faster and filed a caveat in the apex court earlier in the day to prevent Jet from getting an ex-parte order on its transfer petition.
In its transfer petition, filed by law firm Gagrat and Company, Jet Airways prayed for a stay on the proceedings of the case filed against it by Sahara in the Lucknow District Court till the pendency of its case.
It also raised the issue of jurisdiction, saying that the agreement provided for Mumbai as the seat of arbitration between the two parties.
Adding a new twist to the dispute, government today hit back at Jet for blaming it for delays in granting clearances and putting in place related policies, with Civil Aviation Minister Praful Patel saying "the policy cannot be tailor made to suit any particular airlines."
Declaring that it would move the Supreme Court for transfer of cases, Jet had said on Tuesday that its share purchase agreement with Sahara for the Rs 2,300 crore deal was based on 'precedent conditions' being satisfied before the due date of June 21.
"These conditions related to some permissions given by the government of India as well as certain policies relating to merger and acquisition of airlines being in place," Jet had said in a statement.