Mumbai airport's S. African investor wants Supreme Court appointee to arbitrate dispute with GVK

Mumbai International Airport minority partner Airport Company South Africa (ACSA) has approached the Supreme Court to challenge the arbitration proceedings initiated against it by majority partner GVK Airports Holdings.

The arbitration proceedings were initiated against ACSA over an alleged breach of the shareholder’s agreement, reported the Economic Times.

People privy to the development told the paper that the South African investor wants either a person of their choice or a Supreme Court appointee to be a part of the three-member tribunal that has been approached by GVK.

Meanwhile, a three-member Supreme Court bench headed by Chief Justice SA Bobde has told Mumbai International Airport Limited (MIAL), GVK, and the Airport Authority of India to file their responses to ACSA’s petition. The petition will be heard on July 8.

A person in the know of the development has said: “GVK Airport Holdings has approached an arbitral tribunal comprising three former judges members along with MIAL against ACSA for alleged breach of contract in relation to the RoFR (right of first refusal) contained in the shareholders’ agreement.”

The tribunal is reportedly investigating ACSA’s attempt to sell its stake in the Mumbai airport. Two South African firms -- ACSA and Bidvest Group – which together own 23.5 percent stake in the MIAL, have been trying to exit the venture and GVK and Adani Group have been trying to acquire their stakes.

Last year, a single-judge bench of the Delhi High Court had ruled that GVK had failed to exhibit preparedness to purchase the stakes held by the two South African investors.