The influence of a geostrophically balanced or potential vorticity (PV) containing background flow on the propagation of a coherent gravity wave is examined in a rotating shallow-water model. Over inertial time scales, we find that the gravity wave energy is scattered into other modes of similar wavelength, but with different directions of propagation. We attribute this response to nonlinear resonant interactions between the PV and gravity wave modes, despite the absence of any exchange of energy between the two, and show that the response is consistent with resonant triad theory. We first consider the scattering of a gravity wave mode due to a single PV mode, and compare the theoretical response to numerical solutions. This is followed by consideration of the propagation of a coherent gravity mode through a turbulent PV background. These results are expected to have relevance to the propagation of coherent internal tides in the open ocean.