InterGlobe Aviation, Indigo’s parent company, said on Friday that it has received the final arbitral award in the proceedings initiated by its co-founder Rahul Bhatia’s InterGlobe Enterprises Pvt. Ltd (IGE) against the other founder Rakesh Gangwal.
In a filing on the Bombay Stock Exchange (BSE), Indigo had said that no directions have been given to the company. However, directions have been issued to both RG Group and the IGE Group in relation to the relief sought by them against each other. The company said that the award also directs the reimbursement of the costs incurred by the company in relation to the arbitration by the IGE Group.
The company further added that the IGE group had sent a request for arbitration on October 1, 2019, to the London Court of International Arbitration, India under a shareholder’s agreement dated April 23, 2015 (amended on September 17, 2015).
“In the arbitration proceedings, the IGE group sought certain reliefs against the RG group, including in relation to compliance with shareholders agreement and company’s articles of association (articles) as well as damages,” the company said.
The legal battle between Rahul Bhatia and Rakesh Gangwal began on July 8, 2019 when Gangwal wrote to SEBI, Prime Minister’s Office, and to the finance ministry, seeking intervention in several corporate governance issues and Bhatia Group’s control on the airline.
Gangwal had asked for some amendment in the Article of Association of the company to remove the rights of Rahul Bhatia’s IGE Group on the airline. He raised several issues regarding some party transactions, non-independence of the present chairman, and refusal to hold the extraordinary general meeting (EGM).
He had said that the shareholder's agreement provided Bhatia with unusual controlling power over the aviation company, Indigo. However, Bhatia later denied all the allegations.
The IGE group had earlier said that there is absolutely no evidence regarding the questionable third-party transactions between IGE and the airline. Gangwal, and his associates hold around 37 percent in InterGlobe Aviation, while Bhatia’s IGE group owns nearly 38 percent share.
Rakesh Gangwal was recently re-appointed as a director of Indigo. His re-appointment was finalized at an AGM held on August 31, 2021.
Almost one-third of the public institutional investors rejected this re-appointment. However, the resolution was passed as promoters, non-institutional investors and other institutional investors voted in favour. Around 99.99 percent of public non-institutional shareholders (around 4.7 million votes) were in favour of this re-appointment.
(Edited by : Anshul)
First Published: Sept 25, 2021 3:15 PM IST
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