SC halts proceedings in Jet-Sahara case

NEW DELHI: The Supreme Court on Friday stayed proceedings on petitions filed by Jet Airways and Air Sahara against each other in Mumbai and Lucknow courts after a Rs 2,300 crore acquisition deal between them collapsed.

A three-judge Bench headed by Chief Justice Y K Sabharwal also issued notice to Air Sahara on Jet's petition to transfer all suits filed by it in a Lucknow court to the Bombay High Court.

The apex court directed Air Sahara to file its reply within two weeks and asked Jet Airways to file its rejoinder within a week after the reply was submitted.

The court listed the hearing on the matter after three weeks.

The Bench also directed that the interim order of the Lucknow district court to freeze the escrow account opened for the acquisition would continue till further orders.

In January, Jet had agreed to buy smaller rival Air Sahara for $500 million (Rs 2,300 crore) in cash.

But, the deal collapsed in June due to absence of regulatory approvals, including security clearance for Jet chief Naresh Goyal to join Air Sahara's board.

Even before the expiry of the June 21-midnight deadline for completing the share purchase agreement, Air Sahara moved a Lucknow court seeking to stop Jet from operating the escrow account opened for the purpose.

Jet too had filed an identical petition in the Bombay High Court.