The London Court of International Arbitration has awarded the final arbitration award in a feud between promoters Rahul Bhatia and Rakesh Gangwal without giving any direction to the holding company InterGlobe Aviation. The arbitrator issued the award on Friday, September 23, the company said in a regulatory filing.
The proceedings against Gangwal, Chinkarpu Family Trust and Shobha Gangwal (RG Group) were initiated by InterGlobe Enterprises Limited (IGE) and Bhatia on October 1, 2019.
“As per the award, no direction has been issued to the company. The award has issued directions to each of the RG Group and IGE Group with regard to seeking relief against each other, the company said in a statement on Saturday.
The award also directs the reimbursement of expenses incurred by the company in connection with the arbitration by IGE Group.
InterGlobe Aviation did not mention specific details about the arbitration award in its filing.
In the arbitration proceedings, the IndiGo parent company was named as the respondent, but no monetary claim, including any compensation, was sought from the company by IGE Group or RG Group.
According to the filing, IGE Group had sought certain reliefs against RG Group, including damages as well as compliance with the shareholders’ agreement and the company’s Articles of Association (AOA).
It said, “AG Group seeks certain relief against IGE Group, including taking all necessary steps and actions, providing consent and assistance for removal of certain transfer restriction provisions from the articles of the Company.”
The rift between IndiGo promoters Rahul Bhati and Rakesh Gangwal came to public notice in July 2019, when the latter wrote to markets regulator SEBI seeking its intervention to resolve corporate governance issues at the company.
Bhatia’s IGE Group had denied the allegations.
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