The two co-founders of IndiGo - Rahul Bhatia and Rakesh Gangwal - are back on warpath, and any semblance of truce has vanished in thin air.
Bhatia and his InterGlobe Enterprises have on October 1, submitted a Request for Arbitration, at the London Court of International Arbitration, against Gangwal and the latter's RG Group.
The request was submitted "under the shareholders agreement dated April 23, 2015 (as amended on September 17, 2015) executed between, inter-alia, the IGE Group, Mr. Rakesh Gangwal, The Chinkerpoo Family Trust, Ms. Shobha Gangwal (together with Mr. Gangwal and The Chinkerpoo Family Trust, the “RG Group”) and InterGlobe Aviation Limited (the “Company”)," IndiGo said in a late night announcement to the exchanges on October 1.
"The company has been named as a respondent as it is a party to the Shareholders Agreement," the release added.
The arbitration follows months of stiff between the two, and which went public after Gangwal approached SEBI. He had alleged corporate governance violations at IndiGo. These included related party transactions between IndiGo and IGE.
Gangwal also alleged that Bhatia's IGE had overt influence over the appointment of directors and senior management, thereby controlling the airline's operations.
But after the airline's Board amended its policy on related party transactions and also expanded the board, the founders seemed to have made peace with each other. The company's AGM had also amended the Articles of Association.
But Gangwal had continued to seek SEBI's intervention, and now Bhatia has approached the London Court of International Arbitration.
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