HC rules out fresh attachment of Jet Airways

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HC rules out fresh attachment of Jet Airways

The tussle between Jet Airways and Sahara has intensified. The Bombay High Court said today that the warrant of attachment to Jet Airways shall not be executed, but what has been attached so far will not be affected. Earlier, Sahara had moved court over part default of annual instalments by Jet Airways.

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The tussle between Jet Airways and Sahara has intensified. The Bombay High Court said today that the warrant of attachment to Jet Airways shall not be executed, but what has been attached so far will not be affected. Earlier, Sahara had moved court over part default of annual instalments by Jet Airways. CNBC-TV18's Ashwin Mohan and Swati Khandelwal delve deeper.

Also see: Sahara case: What will Jet do now?

Here is a verbatim transcript of Ashwin Mohan and Swati Khandelwal's comments on CNBC-TV18. Also see the accompanying video.

In the first half of the day, we learnt that the Bombay High Court had issued a warrant of attachment against Jet Airways which involved alleged part defaults from their hands. What we learnt from sources after this notice was issued that this warrant could also mean attachment to immovable property belonging to Jet including aircrafts and office equipment, this could then come under the control of the Bombay High Court.

Jet Airways responded by saying that they couldn't comment on the matter as it was currently sub-judicious and they cannot comment on the merits of the case ,so that was the status in the first half of the day.

Close to about 5 pm, Jet's lawyers approached the Bombay High Court seeking a stay on this execution application. While they were arguing in the court, the attachments already happened in the registered office of Jet.

On the argument front, Sahara was very clear. It said the installments that are due from last year on Jet were not paid fully as per the terms of the consent award which was arrived at way back in April 2007 between both the parties. In response, Jet said according to them there was no default in the payment of installments under the consent award. Jet's counsel categorically said they were entitled to deduct tax installments under the consent award.

These are the sets of arguments which were passed. After the arguments got over, the Bombay High Court ruled that there will be no fresh execution of attachment of warrants against Jet.

There are two important dates which we need to look forward to in this case. Jet has to submit an undertaking to the Bombay High Court on or before April 3. The court also directed today that this case will come for hearing and arguments on April 9.

In the stock markets, Jet ended at Rs 169, down 2%. There are definitely interesting days ahead in the legal battle between these two participants in the aviation sector.

But will Jet's operations be impacted?

We spoke to lawyers and we understand from sources that it is unlikely that their operations will be impacted. Jet Airways will continue to fly and their operations will go on, so really no impact as far as their operations are concerned. They have about 86 aircraft in their fleet which includes Jet and Jet-Lite. Out of these, 50% of them are leased and others are owned by Jet. The company might move to Supreme Court if things in this tussle escalate further.