Mumbai: The Bombay High Court today upheld its earlier order which had ruled that Jet Airways was liable to pay the renegotiated amount of Rs 1,450 crore instead of the original determined price of Rs 2,000 crore for the purchase of Sahara Airlines (now Jetlite) in 2007.
The high court also upheld its earlier order asking Jet Airways to pay 9 percent interest on the balance amount of purchase price to Sahara.
A division bench comprising Chief Justice Mohit Shah and Justice GS Godbole dismissed appeals of Sahara India and Jet Airways challenging the 5 May order of the single bench of Justice DY Chandrachud.
Jet had given an undertaking that it will not dispose off the property during the pendency of the appeal filed by Sahara. AFP Photo
There is also ambiguity regarding the case as Sahara had moved the high court and also filed a Special Leave Petition in the Supreme Court, within the prescribed period of 90 days against the impugned order of the single judge.
The bench pronounced that both appeals filed by Sahara India and Jet Airways were “not maintainable” as only SLP lies against the order of the single judge.
Earlier, Jet had given an undertaking that it will not dispose off the property during the pendency of the appeal filed by Sahara. On a plea by Sahara, the division bench has also extended the undertaking by six weeks.
Sahara had contended that Jet Airways was liable to pay Rs 2,000 crore, the original buyout price, instead of the renegotiated amount of Rs 1,450 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 percent as they had not defaulted in payments but had only deducted income tax dues which were liable to be paid by Sahara.