A US court has dismissed Yatra's petition citing fraud and tortious interference by Ebix after the former terminated the merger agreement between the companies in June 2020.
In 2019, there was a proposed merger acquisition between Ebix and Yatra.Com. At that time, it was done at an enterprise value of about US $330 million. Subsequently, there were various delays in the conclusion of that deal and it only got compounded due to the pandemic. And in June 2020, Yatra had exited that merger and acquisition (M&A) agreement and it made allegations of breach of that merger on part of Ebix and towards that end had launched proceedings in the US court.
After nearly a year, it is understood that the US court has come out with its judgement and it has worked towards the detriment of Yatra. It has dismissed Yatra's application saying that this cannot be a case of seeking damages. Yatra had sought to gain from damages from Ebix. The US court in very explicit terms holding that this is not a case of fraud, this is not a case of breach of the agreement that argument cannot be made since Yatra was the one who decided to exit the merger and acquisition agreement in the first place. This cannot be made out to be the case of tortious interference.
So, it is a set back for Yatra but they will have access to legal remedies which they decide on the way forward.
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