The Hindu : National : Jet moves Supreme Court

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Thursday, Jun 29, 2006

National

National

Jet moves Supreme Court

Legal Correspondent

Seeks stay of Lucknow district court's interim orders

"Orders passed without deciding question of jurisdiction" Sahara files caveat

New Delhi : Jet Airways on Wednesday moved the Supreme Court seeking transfer of an arbitration petition filed by the Sahara India Commercial Corporation in a Lucknow district court to the Bombay High Court. A Rs. 2,300-crore deal for Jet Airways takeover of Air Sahara failed.

In the transfer petition, Jet Airways said it had filed an arbitration petition in the High Court on June 20 and the same day Sahara filed an application in the Lucknow court.

On June 21, the district judge passed an order restraining Jet Airways from demanding and/or receiving Rs. 1,500 crore deposited in an escrow account with ICICI Bank and an injunction restraining the bank from releasing the amount.

On June 23, the district judge passed another interim order restraining Jet Airways from enforcing the pledge agreement.

Jet Airways maintained that it initiated the first proceedings in Mumbai. Further, the Lucknow court did not have jurisdiction to entertain the matter. Even otherwise, as per the agreement, the place of arbitration was Mumbai.

The Lucknow court judge passed the interim orders without deciding the question of jurisdiction.

The petition said the purported exercise of jurisdiction by the district judge resulted in miscarriage of justice and the petitioner would continue to suffer grave and irreparable harm, loss and prejudice if the case was not transferred to Mumbai.

Jet Airways also sought a stay of operation of the interim orders

Meanwhile, Air Sahara filed a caveat to ensure that it was also heard before any order was passed on the transfer petition.

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