The Bombay High Court on Wednesday asked India’s biggest private carrier Jet Airways to pay Sahara India
Rs 478 crore within two weeks in connection with its 2007 acquisition of Sahara Airlines.
Minutes later, Sahara, not satisfied with the ruling, moved a division bench of the high court in appeal against the order.
Jet Airways’ stock fell by more than 4.7% or Rs 22 to close at Rs 447 following the order.
Passing the order, Justice DY Chandrachud observed that Jet was “in default of its obligation” during the takeover deal, even while noting that Sahara too was in breach of its indemnity of agreement.This may be viewed as partial relief for Jet Airways as the court has concluded that its liability is only R1,450 crore, against the Rs 2,000 crore claim raised.
Jet had bought Sahara Airlines from Sahara Group in April 2007 for Rs 1,450 crore after an arbitration award. It paid R900 crore and agreed to pay the balance in four installments.
Sahara moved the high court in 2009 contending that the Naresh Goyal-led airline was liable to pay R2,000 crore, not Rs 1,450 crore as agreed.
A Jet Airways official said the airline would make the payment as directed by the court.
M Shivkumar, senior vice president (finance), Jet Airways said the airline paid Sahara Rs 900 crore in 2007 and has already deposited Rs 275 crore more with the court in installments.
Once the amount is paid, the 2009 high court order attaching properties of Jet Airways would stand vacated, Justice Chandrachud observed.