InterGlobe Aviation, which owns the country’s top airline , on Friday said it has received the final arbitral award in the proceedings initiated by its cofounder Rahul Bhatia-owned lnterGlobe Enterprises Private Limited against the other cofounder Rakesh Gangwal.
“Pursuant to the award, no directions have been issued to the company,” the company said in a filing in the BSE. “The award has issued directions to each of the RG Group and IGE Group in relation to the relief sought by them against each other. The award also directs the reimbursement of the costs incurred by the company in relation to the arbitration by the IGE group,” it said without elaborating.
The legal feud between the two founder promoters of IndiGo started on July 8, 2019, when Gangwal wrote to stock market regulator Sebi, the Prime Minister’s Office and the finance ministry among others, seeking intervention on various corporate governance issues and Bhatia Group’s control on the airline.
He had sought amendment to the Articles of Association of the company to remove rights of Bhatia’s IGE Group on the airline, and raised past related party transactions, non-independence of the current chairman, and refusal to hold the extraordinary general meeting when requisitioned by Gangwal, among other issues.
The contentious shareholders agreement that, according to Gangwal, gave unusual rights to Bhatia was signed on April 23, 2015, and amended on September 17, 2015.
On August 27, 2019, two board meetings and several discussions later, there were resolutions adopted in an AGM to resolve issues and there were signs of a truce between Bhatia and Gangwal.
On September 4, 2019, IndiGo confirmed that Sebi had sought some clarifications from the company based on Gangwal’s letter.
Following this, Bhatia, on October 1, 2019, moved the London Court of International Arbitration (India) against Gangwal, alleging breach of shareholders’ agreement and seeking information.
On October 1, 2019, Bhatia filed a case against Gangwal in London Court of International Arbitration (India), alleging breach of shareholders’ agreement and seeking information.
On October 15, 2019, Bhatia filed cases against independent director Anupam Khanna and Gangwal in separate US district courts (Maryland and Florida).
The case against Gangwal was closed and refiled in Florida the next day. On November 8, 2019, Gangwal responded, seeking a rejection of Bhatia’s application. On November 15, 2019, Bhatia re-applied, requesting the Florida court to grant the application.
Now, according to InterGlobe Aviation, the arbitration award has come,