SC notices to Jet Airways, Sahara on sellout dispute

SC notices to Jet Airways, Sahara on sellout dispute

New Delhi: The Supreme Court on Friday issued notices on cross appeals by Sahara India and Jet Airways challenging a Bombay high court order directing the latter to pay a renegotiated amount instead of the original determined price for purchase of Sahara Airlines (now Jetlite) in 2007.

On 17 October, the high court had upheld its earlier order by a single judge asking Jet Airways to pay 9% interest on the balance amount of purchase price to Sahara.

A division bench comprising Chief Justice Mohit Shah and Justice G. S. Godbole had dismissed appeals of Sahara India and Jet Airways challenging the 5 May order of the single bench of Justice D. Y. Chandrachud.

The bench had ruled that the two appeals filed by Sahara India and Jet Airways were “not maintainable" as only an SLP was maintainable against the order of the single judge.

Earlier, Jet had given an undertaking that it will not dispose of the property during the pendency of the appeal filed by Sahara.

Sahara had contended that Jet Airways was liable to pay Rs2,000 crore, the original buyout price, instead of the renegotiated amount of Rs1,450 crore because the latter had defaulted in paying installments by deducting income tax dues.

Both sides had agreed to the renegotiated price on condition that Jet would not default in paying installments.

Jet Airways contended that they were not liable to pay interest on balance amount at 9% as they had not defaulted in payments but had only deducted income tax dues which were liable to be paid by Sahara.