The Supreme Court on Monday directed that all disputes arising out of the collapsed Jet-Sahara deal will be heard by the Bombay high court but did not vacate the stay on the escrow account and advance paid by Jet for the purpose.
The order was passed by a Bench headed by Chief Justice Y K Sabharwal, which also asked the Bombay high court to expeditiously decide the issue of jurisdiction.
The court said the injunction granted by the Lucknow court will continue till further orders.
The court said with respect to the various clauses of the escrow, pledge and guarantee agreements it was of the view that the ends of justice would be met at one court, namely the Bombay high court.
However, the Bench said it would be subject to the high court having inherent jurisdiction to entertain the dispute.
The court said on this aspect it was expecting no opinion.
The Bench further said that it will be open to respondent Sahara to urge before the Bombay high court that it lacks inherent jurisdiction.
If it was found that the Bombay high court has inherent jurisdiction then the petition filed by Jet Airways before the Lucknow court would be heard in Mumbai.
The biggest ever acquisition deal in the Indian civil aviation sector (Worth Rs 2,300 crore) had collapsed in June reportedly due to the absence of regulatory clearances after five months of the agreement signed between Jet and Sahara.
On the collapse of the deal Jet and Sahara had approached Bombay high court and the Lucknow court respectively seeking to restrain each other from withdrawing money deposited in the escrow account in ICICI Bank.
