On Friday, the Delhi high court refused to allow a plea moved by IndiGo co-promoter Rakesh Gangwal seeking to enforce an arbitration award that was awarded by the London Court of International Arbitration.
The court said that the directions sought by Gangwal are tantamount to enforcement, and can’t be allowed at this stage. The court asked Gangwal to make the payment of damages of $25,000.
Meanwhile, the counsel of InterGlobe Enterprises Private Ltd’s (IGE’s) co-promoter Rahul Bhatia said that Indigo will challenge the arbitral award.
Harish Salve, appearing for Gangwal, said, "I have an enforceable award. Award asks for both sides should jointly take action to remove restrictions under Articles of Association."
"Seeking to requisition for an EGM, we are inviting draft resolutions. We have to agree to the term of the resolutions that have to be passed. If they do not challenge this verdict, at least this process can be finished. There is no tearing hurry, let us begin this exercise."
Senior advocate Abhishek Manu Singhvi, appearing for Bhatia, said "Rakesh Gangwal is seeking to enforce the award in this fashion. He is trying to pay the damages of merely $25,000, we’ll accept it. We have 90 days to consider legal options, we may consider a challenge."
"Indigo was not a party to the dispute but is facing consequences of the arbitral award. Award can’t be enforced in this fashion."
Gangwal on Thursday moved the court to enforce the arbitration award. Earlier on September 23, the London Court of International Arbitration gave the final award in the proceedings initiated by Bhatia against Gangwal. Both parties were granted 90 days’ time to enforce the order.