The Bombay high court said on Thursday it has the jurisdiction to adjudicate on the dispute between Jet Airways and Air Sahara over a failed takeover deal and would hear all four petitions pending in this regard.
"The court holds the jurisdiction to hear all four cases," Justice D K Deshmukh said and adjourned the hearing for Friday.
Earlier, Air Sahara counsel Rohit Kapadia argued the high court did not have the authority to hear the case as the share purchase agreement for the deal was signed outside Mumbai.
However, Jet Airways' counsel Harish Salve and Janak Dwarkadas submitted that since the agreements for the deal were signed and the escrow account was set up, the high court indeed had the jurisdiction to hear the matter.
The Supreme Court had in August transferred all petitions relating to the Jet-Sahara dispute before the Bombay high court.
"With respect to the various clause of the Escrow, Pledge and Gurantee agreement, we are of the view that ends of justice will be met at one court, namely Bombay high court.
This is subject to Bombay high court having inherent jurisdiction to entertain the disputes," a Supreme Court Bench had said.
Arguments were still on before the high court.
The dispute relates to the failed deal for takeover of Air Sahara by Jet Airways.
As part of the deal, reached in January, Jet had paid Rs 180 crore (Rs 1.8 billion) for revival of Air Sahara and Rs 500 crore (Rs 5 billion) in lieu of Air Sahara shares pledged with it, besides deposited Rs 1,500 crore (Rs 15 billion) in the escrow account opened for the purpose.
After the deal fell through over absence of regulatory clearances on June 21, Sahara moved a court in Lucknow seeking to bar Jet from operating the escrow account.
In all, four petitions (two by Sahara Group and as many by Jet) are pending in connection with the matter.
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