Air Sahara on Wednesday informed a Lucknow court that Jet Airways had terminated the takeover deal and secured an interim order restraining the latter from withdrawing money from the escrow account till June 23.
Updated at 8.05 pm
LUCKNOW/MUMBAI: Lending a new twist to their battle hours before the deadline for the share purchase agreement expires, Air Sahara on Wednesday informed a Lucknow court that Jet Airways had terminated the takeover deal and secured an interim order restraining the latter from withdrawing money from the escrow account till June 23.
Jet Airways, on its part, moved the Bombay High Court seeking a similar restraint on Air Sahara, saying the rival carrier had failed to fulfill conditions in the agreement like transfer of airport infrastructure facilities and hence should be stopped from operating the account.
District Judge (Lucknow) Shiv Charan Sharma restrained ICICI Bank, where the account has been opened, not to make any payments to Jet.
The judge, in his interim order, said, "It has been alleged on behalf of the petitioner that the opposite party (Jet) has terminated the contract, hence there is a dispute and for which arbitrator is to be appointed in due course."
The order came on a petition filed by Sahara India Commercial Corporation Ltd, the holding company of Air Sahara, under Section 9 of the Arbitration and Conciliation Act.
The court gave Jet Airways time till June 23, the next date of hearing, to file objections to Sahara's contention on the Rs 2,300 crore deal.
Sahara, in its petition, claimed that Rs 1,500 crore was lying in the escrow account, while Jet submitted before the high court that Rs 500 crore had been transferred to the account as advance for purchase of Air Sahara.
While seeking the restraint order, the Sahara counsel told the court that it feared that Jet Airways would be at liberty to withdraw the escrow amount after midnight, when the deadline for share purchase agreement expires.
Jet Airways filed an arbitration petition before the Bombay High Court seeking direction to stop Air Sahara and its seven directors from withdrawing Rs 500 crore transferred by it as part of the acquisition deal reached on January 19.
Jet contended that it had paid Rs 500 crore on March 29 as advance payment to escrow agent for purchase of Sahara airlines in keeping with an agreement which was subject to conditions like automatic transfer of airport infrastructure.
The Naresh Goyal-promoted airline also sought a direction from the high court that Sahara should not issue notices to ICICI Bank to the effect that it has met all the conditions.
Investment banking sources said Air Sahara has initiated talks with potential buyers, who could be interested in the carrier, although Kingfisher Airlines chief Vijay Mallya ruled out reviving acquisition plans.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}