Wednesday, June 09, 2021

IndiGo promoters spat: Hearing in London over, arbitration outcome soon

A legal outcome is in sight in the matter of dispute between the two promoters of India's largest airline IndiGo.

"Arbitration procedures were going on in London, I think the hearings are over, we are waiting for the outcome but for us, it is business as usual," IndiGo Chief Executive Officer Rono Dutta told CNBC-TV18 in an exclusive interaction.

"I think we have very active and articulate board members. We all focus on the business. What happens in London happens in London, nothing to do with us," Dutta added.

"I would almost say I don't know and I don't care. It is a sideshow for me," Dutta said when asked about the exact timeline of the outcome.

The promoter rift at IndiGo reached London in 2019 as co-founder Rahul Bhatia submitted an arbitration request in relation to the differences between him and Rakesh Gangwal on shareholders' agreement and articles of association.

The arbitration request, dated October 2019, was submitted to the London Court of International Arbitration under the shareholders' agreement dated April 23, 2015.

While Bhatia and his group InterGlobe Enterprises Pvt Ltd are claimants, Rakesh Gangwal, his wife Shobha Gangwal and their associated entity—the Chinkerpoo Family Trust—and IndiGo are named as the respondents.

"This dispute relates to claims of the IGE Group against the RG (Rakesh Gangwal) Group regarding, inter-alia, compliance with the Shareholders Agreement and the articles of association of the Company and damages," IndiGo had informed the exchanges in October 2019.

In the exchange filing, IndiGo had also clarified that the arbitration requests have not sought any relief against the company. It had also added that while IndiGo has been named as a necessary and proper party to the arbitration, presently, monetary claim, including any compensation or penalty, has not been sought against the company.

09/06/21 CNBC TV18

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