JET AIRWAYS INDIA LIMITED Vs. SAHARA AIRLINES LIMITED

JUDGEMENT

(1.) THE proceedings arise in execution of a consent award of 12 April 2007 of an Arbitral Tribunal.

(2.) ON 18 January 2006, a Share Purchase Agreement (SPA) was entered into between Sahara India Commercial Corporation and six others, ("the selling shareholders"), Jet Airways (India) Limited ("Jet") as purchaser and Sahara Airlines Limited. By an amendment agreement dated 29 March 2006, time to fulfill certain conditions precedent was extended upto 21 June 2006.

(3.) SEVERAL proceedings were initiated in Court. One of the selling shareholders moved the District Court at Lucknow under Section 9 of the Arbitration and Conciliation Act, 1996 for an injunction restraining the escrow agent from releasing and Jet seeking the release of the consideration of Rs.1,500/ crores. Other selling shareholders also filed an Arbitration Petition at Lucknow. Jet filed an Arbitration Petition under Section 9 in this Court for injunctive relief. On a transfer petition by Jet, on 28 August 2006, the Supreme Court transferred the Arbitration Petitions filed at Lucknow to this Court. Jet, in the meantime, instituted a Summary Suit in this Court for the recovery of an amount of Rs.500/ crores based on a personal guarantee executed by Shri Subrata Roy Sahara. This Court passed an order on 22 September 2006 on Jet's application by consent, permitting Jet to withdraw an amount of Rs.500/ crores from the escrow account upon furnishing a Bank Guarantee for the amount.