Dispute between IndiGo Co-founders and promoters, Rahul Bhatia and Rakesh Gangwal is now headed for arbitration in London.
On Tuesday, Rahul Bhatia and his family promoted InterGlobe Enterprises (IGE) submitted a request to London Court of International Arbitration. While these two are claimants in this application, respondents include Rakesh Gangwal and IndiGo.
IndiGo stated that,“This dispute relates to claims of IGE Group against RG Group regarding, inter-alia, compliance with the Shareholders Agreement and the articles of association of the company and damages. Under the request for arbitration, no relief has been sought against the company. Company (IndiGo) has been named as a necessary and proper party to the arbitration. However, presently, no monetary claim, including any compensation or penalty, has been sought against the company”.
Request for arbitration has been submitted under the shareholders agreement (SHA) of April 23, 2015, which was amended in September 17, 2015, and executed between the IGE Group, Gangwal Group and InterGlobe Aviation Limited (IndiGo).
IGE and RG Groups are promoters of IndiGo, have been named as a respondent as it is a party to the SHA.
Two promoters have had a raging disagreement over issue of IndiGo entering into related party transactions with IGE Group companies. Other issue with Gangwal was level of control of Bhatia and IGE on IndiGo.
Both Gangwal and Bhatia have about 38% stake in IndiGo.
Source TOI
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