New Delhi: IndiGo promoters – InterGlobe Enterprises and Rahul Bhatia – have sought arbitration proceedings in London against the backdrop of differences with co-promoter Rakesh Gangwal.
In a filing to the stock exchanges on Tuesday, InterGlobe Aviation said the two entities have submitted a request for arbitration on 1 October to the London Court of International Arbitration. InterGlobe Aviation is the parent of IndiGo, the country’s largest airline in terms of domestic market share. The request has been submitted under the shareholders’ agreement, dated 23 April 2015. The pact was amended on 17 September 2015, the filing said.
The agreement was executed between Bhatia’s InterGlobe Enterprises Group (IGE Group), Gangwal, the Chinkerpoo Family Trust, Shobha Gangwal – the RG Group – and InterGlobe Aviation Ltd. “This dispute relates to claims of the IGE Group against the RG Group regarding, inter-alia, compliance with the shareholders agreement and the articles of the association of the company and damages. ‘Under the request for arbitration, no relief has been sought against the company,” it said.
The company has been named as a respondent as it is a party to the shareholders’ agreement, the filing added. Bringing the differences between long-time friends and promoters of IndiGo into open, Gangwal, in July, had sought Sebi’s intervention in alleged corporate governance lapses at the company. The allegations were rejected by Bhatia group. Shares of the airline declined 1.10 per cent to close at Rs 1,870.85 on BSE.