No direction to firm in arbitration award on promoters’ feud: IndiGo
The London Court of International Arbitration has given the final arbitration award in the matter related to the spat between IndiGo promoters, Rahul Bhatia and Rakesh Gangwal, and no directions have been issued to InterGlobe Aviation.
InterGlobe Aviation is the parent of the country’s largest airline IndiGo.
In a regulatory filing, InterGlobe Aviation said it is in receipt of the final arbitral award, dated September 23, issued in the arbitration proceedings wherein the company was also named as a respondent.
The proceedings were initiated by InterGlobe Enterprises Ltd (IGE) and Bhatia against Gangwal, the Chinkerpoo Family Trust and Shobha Gangwal (RG Group).
On October 1, 2019, the IGE Group had submitted the request for arbitration to the London Court of International Arbitration.
“Pursuant to the award, no directions have been issued to the company. The award has issued directions to each of the AG Group and IGE Group in relation to the relief sought by them against each other,” InterGlobe Aviation said in the filing on Friday.
The award also directs the reimbursement of the costs incurred by the company in relation to the arbitration by the IGE Group, it added.
Specific details about the award could not be ascertained.
In the arbitration proceedings, the company was named as a respondent but no monetary claims, including any compensation, were sought from the company by the IGE Group or the RG Group.
The IGE Group had sought certain reliefs against the RG Group, including in relation to compliance with the shareholders agreement and the company’s Articles of Association (AoA) as well as damages, as per the filing.
“The AG Group also sought certain reliefs against the IGE Group, including to carry out all requisite steps and actions, provide consents and assistance to remove certain transfer restriction provisions from the company’s articles,” it added.
The differences between the promoters came into the public in July 2019 after Gangwal wrote to markets regulator Sebi seeking its intervention to address corporate governance issues at the company.
Bhatia’s IGE Group had rejected the allegations.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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