The Supreme Court on Monday directed that all disputes arising out of the collapsed deal for acquisition of Sahara Airlines by Jet Airways for Rs 2,300 crore will be heard by the Bombay High Court.
The court, however, did not vacate the stay on the escrow account and advance paid by Jet for the purpose.
The order was passed by a Bench headed by Chief Justice YK Sabharwal, which also asked the Bombay High Court to expeditiously decide the issue of jurisdiction.
The court said that the injunction granted by the Lucknow Court would continue till further orders.
The court said with respect to the various clauses of the escrow, pledge and guarantee agreements that it was of the view that the ends of justice would be met at one court, namely the Bombay High Court.
However, the Bench said that it would be subject to the High Court having inherent jurisdiction to entertain the dispute.
The court said that it would not express any opinion in this regard.
The Bench further said that it would be open to respondent Sahara to urge before the Bombay High Court that it lacks inherent jurisdiction.