Monday, August 28 2006 17:08 Hrs (IST) - World Time -

New Delhi: The Supreme Court today (Aug 28, 2006) directed that all disputes arising out of the collapsed deal for acquisition of Sahara Airlines by Jet Airways for Rs 2,300 crore, 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 Bombay.